广东省高速公路发展股份有限公司
Guangdong Provincial Expressway Development Co.，Ltd.
Semi-Annual Report 2011
（Full Text）
Stock Abbreviation: Guangdong Expressway A, Guangdong Expressway B
Stock code: 000429, 200429
Chairman of board of directors：Zhou Yuming
August 2011
Important Notes
The board of directors and directors of the Company hereby guarantees that there are
no false records, misleading representation or important omissions in semi-annual
report and shall assume joint and several liability for the authenticity, accuracy and
completeness of the contents hereof.
All the directors attended and vote the board meeting.
Chairman of board of directors Mr. Zhou Yuming, General Manager of the Company
Mr. Li Xiyuan ,Deputy General Manager and Chief Accountant of the Company Mr.
Xiao Laijiu State: Financial Report in Semi-annual report is true and complete.
The financial report of the semi-annual report has not been audited.
Table of Contents
I Basic Information of the Company ...................................................................................1
II Highlights of financial data and indicators .......................................................................3
III Change of Share Capital and Shareholding of Principal Shareholders .............................5
IV Particulars about the Directors, Supervisors and Senior Executives.................................8
V .Report of the Board of Directors......................................................................................9
VI . Important events............................................................................................................15
VII Finacial Report (Uncensored) .........................................................................................22
VIII . Documents Available for Inspection ...........................................................................149
This report has been prepared in both Chinese and English. In case of any
discrepancy, the Chinese version shall prevail.
Semi-Annual Report 2011
I Basic Information of the Company
(I).Legal name of the company
Name in Chinese：广东省高速公路发展股份有限公司
Name in English: Guangdong Provincial Expressway Development Co., Ltd.
English abbreviation: GPED
(II) Legal Representative：Zhou Yuming
(III) Secretary of the Board of Directors and Securities affair representative
Securities affair representative
Secretary of the Board of Directors
Name Zuo Jiang Feng Xinwei
Contact 85 Banyun Road, Guangzhou, 85 Banyun Road, Guangzhou,
Address Guangdong Province Guangdong Province
Tel： 020-83731388-230 020-83731388-231
Fax： 020-83731363 020-83731363
E-mail zuoj@gdcg.cn fengxw@gdcg.cn
(IV) Registered address of the Company: 85 Banyun Road, Guangzhou, Guangdong Province
Office address: 85 Banyun Road, Guangzhou, Guangdong Province
Postal Code: 510100
E-mail：zqb@gdcg.cn
Website: http://www.gpedcl.com
(V) Designated newspapers for information disclosure: Securities Times, China Securities,
Shanghai Secuties Daily and Hongkong Commercial Daily.
Web address for Publication of semi-annual Report 2011 (appointed by the China Securities
Regulatory Commission): www.cninfo.com.cn
Address for Reference of the Semi-annual report 2011: Securities affair Dept of the Company
(VI) Stock exchange for listing: Shenzhen Stock Exchange
Stock abbreviation: Guangdong Expressway A, Guangdong Expressway B
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Semi-Annual Report 2011
Stock code：000429、200429
(VII) Relevant information
1. First Registration Date of the Company: February 9, 1993
Registered Address:：4/F, Dongjian Building, No.503, Dongfeng Zhong Road, Guangzhou,
Guangdong Province
The date of last registration change：December 17,2007
Registered Address：85 Banyun Road, Guangzhou, Guangdong Province
2.Company’s Enterprise Legal Business Registration Number:：440000400006921
3.Company’s Tax Registration Number: 440102190352102
4. Organization Code：19035210-2
5.Compnay’s Auditors:
GP Certified Public Accountants
Office address：10/F,Yuehai Building, No.555 ,Dongfeng East Road, Guangzhou
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Semi-Annual Report 2011
II Highlights of financial data and indicators
(I) Highlights of financial data and indicators
Unit ：RMB
End of the report End of the Increase /Decrease （％）
year previous year
Total assets 10,876,126,653.03 10,526,464,082.25 3.32%
Owners’ equity attributable to shareholders
4,156,305,586.78 4,283,251,674.35 -2.96%
of the listed company
Share capital 1,257,117,748.00 1,257,117,748.00 0.00%
Net assets per share attributable to
shareholders of the listed 3.306 3.407 -2.96%
company(RMB/share)
Report period Same period last Increase /Decrease （％）
(January-June) year
Total operating income 513,043,078.52 501,059,949.79 2.39%
Operating profit 247,151,681.30 301,783,513.71 -18.10%
Total profit 196,930,632.47 313,151,772.82 -37.11%
Net profit attributable to shareholders of the
145,165,687.23 237,803,790.41 -38.96%
listed company
Net profit attributable to shareholders of the
listed company after deducting 172,333,269.24 231,361,582.32 -25.51%
non-recurring gains and losses
Basic earnings per share(RMB/share) 0.12 0.19 -36.84%
Diluted earnings per share(RMB/share) 0.12 0.19 -36.84%
Return on equity（%） 3.35% 6.43% -3.08%
Return on equity after deducting
3.98% 6.26% -2.28%
non-recurring gains and losses（%）
Net cash flow arising from operating
311,622,476.31 328,942,405.14 -5.27%
activities
Net cash flow per share arising from
0.248 0.262 -5.34%
operating activities (RMB/share)
(II) Non-recurring gain or loss items and related amount
Unit ：RMB
Notes (if
Items of non-recurring gains and losses Amount
applicable
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Semi-Annual Report 2011
Abandon Longshan
and Chenshan two
Gain/loss form disposal of non-current assets -54,607,042.73
interchange assets net
value
Governmental Subsidy accounted as current gain/loss,
except for those subsidies at with amount or quantity fixed
71,600.00
by the national government and closely related to the
Company’s business operation.
Net amount of non-operating income and expense except the
4,314,393.90
aforesaid items
Amount of influence of income tax 12,867,051.25
Amount of influence of minority interests 10,186,415.57
Total -27,167,582.01 -
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Semi-Annual Report 2011
III Change of Share Capital and Shareholding of Principal Shareholders
I. Changes in share capital Unit: share
Before the change Increase/decrease（+，-） After the Change
Amount Proportio Capitalizati
n on of
Share Bonus
common Other Subtotal Quantity Proportion
allotment shares
reserve
fund
I. Share with
conditional 440,775,421 35.06% -2,819 -2,819 440,772,602 35.06%
subscription
1.State-owned
409,910,135 32.61% 10,144 10,144 409,920,279 32.61%
shares
2.Staee-owned
legal person 22,301,977 1.77% 22,301,977 1.77%
shares
3.Other domestic
8,364,452 0.67% -10,144 -10,144 8,354,308 0.66%
shares
Of which：
Domestic
Non-state –owned 7,835,481 0.62% -85,056 -85,056 7,750,425 0.62%
legal person
shares
Domestic natural
528,971 0.04% 74,912 74,912 603,883 0.05%
person shares
4.Share held by
foreign investors
Of which：
Foreign legal
person shares
Foreign natural
person shares
5 .Executive
198,857 0.02% -2,819 -2,819 196,038 0.02%
shares
II. Shares with
unconditional 816,342,327 64.94% 2,819 2,819 816,345,146 64.94%
subscription
1.Common shares
467,592,327 37.20% 2,819 2,819 467,595,146 37.20%
in RMB
2.Foreign shares
in domestic 348,750,000 27.74% 348,750,000 27.74%
market
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Semi-Annual Report 2011
3.Foregin shares
in overseas market
4.Other
III. Total of
1,257,117,748 100.00% 0 0 1,257,117,748 100.00%
capital shares
Notes (1).In the report period, 23 shareholders repaid 10,144 shares to Guangdong
Communication Group Co., Ltd. as consideration. Domestic natural person shares were converted
into state shares.
(2).In the report period, 85,056 domestic natural person shares subject to sale restriction were
converted into domestic natural person shares, which were still subject to sale restriction.
(3). At the end of previous year, the shares held by the senior executives of the Company
decreased. In the report period, 2819 shares held by senior executives changed from "restricted
shares" into "unrestricted shares".
2.There are 102,297 shareholders as ended June 30, 2010, of which 66,120 are A share
shareholders, 36,177 are B share shareholders.
3.Particulars of the shareholding of the top ten shareholders and Top 10 holders of unconditional
shares as of June 30, 2011.
Unit：Shares
Total of shareholders 102,297
Particulars about the shareholding of the top ten shareholders
Nature of Proportion
Name of shareholder Total shares Conditional shares Pledged or frozen
shareholder (%)
Guangdong Communication State-owned
40.83% 513,300,021 409,920,279 103,379,742
Group Co., Ltd. legal person
Guangdong Expressway State-owned
1.56% 19,582,228 19,582,228
Co., Ltd legal person
Overseas legal
Xinyue Co., Ltd. 1.05% 13,201,086
person
Guangdong Yuecai Trust State-owned
0.97% 12,174,345
Investment CO., Ltd legal person
Shanxi Huiteng
International Freight Unknown 0.29% 3,604,700
Forwarding Co., Ltd.
STICHTING PGGM Overseas legal
0.29% 3,599,861
DEPOSITARY person
Domestic
Lu Weiqiang 0.23% 2,888,848
natural person
Chen Shukai Domestic 0.22% 2,742,700
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Semi-Annual Report 2011
natural person
Domestic
Hu Airong 0.21% 2,581,438
natural person
Shenzhen Jifu Chuangye
Unknown 0.18% 2,273,504
Investment Co., Ltd.
Top 10 holders of unconditional shares
Name of the shareholder Unconditional shares Type of shares
Guangdong Communication Group Co.,
103,379,742 RMB Common shares
Ltd.
Foreign shares placed in domestic
Xinyue Co., Ltd. 13,201,086
exchange
Guangdong Yuecai Trust Investment
12,174,345 RMB Common shares
CO., Ltd.
Shanxi Huiteng International Freight
3,604,700 RMB Common shares
Forwarding Co., Ltd.
Foreign shares placed in domestic
STICHTING PGGM DEPOSITARY 3,599,861
exchange
Foreign shares placed in domestic
Lu Weiqiang 2,888,848
exchange
Foreign shares placed in domestic
Chen Shukai 2,742,700
exchange
Hu Airong 2,581,438 RMB Common shares
Shenzhen Jifu Chuangye Investment Co.,
2,273,504 RMB Common shares
Ltd.
Foreign shares placed in domestic
Hu Airong 2,219,400
exchange
Guangdong Communication Group Co., Ltd. is the parent company of Guangdong
Notes to the related
Expressway Co., Ltd. and Xinyue Co., Ltd.. It is unknown whether there is relationship
relationship between the
between other shareholders and whether they are persons taking concerted action
shareholders or their
specified in the Regulations on Disclosure of Information about Change in
concerted action
Shareholding of Shareholders of Listed Companies.
4.There was no change in the Company’s controlling shareholder or actual controller during
the reporting period.
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Semi-Annual Report 2011
IV Particulars about the Directors, Supervisors and Senior Executives
I. In the report period, Change of Shareholding of Directors, Supervisors and Senior Executives
In the report period, the shares of the Company held by the directors, supervisors and senior
executives of the Company remained unchanged.
In the report period, The Company neither exercised stock options nor grant restricted stocks.
2. Particulars about employment and dismiss ion of directors, supervisors and executives in the
report period
The company neither employed nor dismiss of directors, supervisors and executives in the report
period.
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Semi-Annual Report 2011
V .Report of the Board of Directors
I. Business situation in the report term
(I) Operating status of the expressways wholly or partly held by the Company
In the first half year of 2011, the volume of vehicle traffic and toll income of the expressways
wholly and partly held by the Company were as follows:
Toll income from
Traffic volume form Jan Increase Jan to Jun 2011
to June Increase/Decrease(%)
/Decrease(%) (RMB Million
2011(million vehicles) yuan)
Guangfo
17.74 13.65% 146.13 6.55%
Expressway
Fokai
12.89 -4.71% 336.22 -0.24%
Expressway
Jiujiang
3.52 14.02% 23.44 16.34%
Bridge
Shenzhen
Huiyan
13.47 -4.64% 140.87 -9.74%
Expresswa
y
Maozhan
5.09 3.39% 211.81 0.09%
Expressway
Jingzhu
Expressway
22.32 7.92% 563.96 -1.08%
Guangzhu
Section
Guangzhao
8.34 32.83% 178.79 45.29%
Expressway
Guanghui
13.54 10.49% 706.03 -5.8%
Expressway
Jiangzhong
15.59 50.93% 171.79 17.92%
Expressway
Kangda
0.61 126.51% 68.45 359.21%
Expressway
Gankang
0.86 -- 37.81 --
Expressway
In the first half year, the vehicle traffic volume and toll income of the expressways partly or
wholly held by the Company kept stable growth on the whole;
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Semi-Annual Report 2011
Due to road construction in the neighborhood, some vehicles made a detour to run on Guangfo
Expressway so that its vehicle traffic volume and toll income somewhat increased. The vehicle
traffic volume and toll income of Fokai Expressway slightly decreased mainly due to the
construction of Fokai Expressway expansion project. The vehicle traffic volume and toll income
of Jiujiang Bridge is still in the stage of restored growth. Due to increase of getaway of container
trucks without toll payment, toll income of Shenzhen Huiyan Expressway somewhat decreased.
As Hengli Fly-over Bridge opened to traffic, short-distance vehicles running on Guangzhu Section
of Jingzhu Expressway increased. However, due to decrease of vehicle traffic volume of the whole
road, toll income decreased. As Yunwu Expressway and phase-II Guangzhao Expressway were
open to traffic last year and the road network was formed, the vehicle traffic volume and toll
income of Guangzhao Expressway increased by big margin. The opening of Yuegan Expressway
to traffic shunted some trucks so that the toll income of Guanghui Expressway somewhat
decreased. As west line of Guangzhu Expressway was open to traffic, short-distance vehicles
running on Jiangzhong Expressway increased. Meanwhile, "Green Passage" of Jiangzhong
Expressway was opened to traffic from this year. As a result, the growth rate of toll income is
apparently lower than that of vehicle traffic volume. As Shaogan Expressway was open to traffic
and road network was formed, the vehicle traffic volume and toll income of Kangda Expressway
increased by big margin.
(II) Year-on-year increase/decrease of operating income, operating profit and net profit
Unit：RMB
January-June January-June Year-on-year
2011 2010 increase/decrease
Operating income 513,043,078.52 501,059,949.79 2.39%
Operating cost 251,728,804.04 241,612,200.11 4.19%
Operating profit 247,151,681.30 301,783,513.71 -18.10%
Investment income 170,469,406.79 190,006,307.13 -10.28%
Net profit attributable to
145,165,687.23 237,803,790.41 -38.96%
shareholders of the listed company
Reasons for increasing of Operating income：Due to road construction in the neighborhood,
vehicles made a detour to run on Guangfo Expressway so that its toll income somewhat increased
year on year.
Reasons for increasing of Operating cost：In this year, provision for depreciation is made
according to the data of vehicle traffic volume estimated by Guangdong Highway Survey &
Planning Design Institute at the end of 2010. Besides, with the completion of expansion projects
of Fokai Expressway Co., Ltd. ("Fokai Company") in the first quarter, capitalized interests on
borrowings were converted into expenses.
Reasons for increasing of Operating cost：Gankang Expressway was opened to traffic in the
second half of 2010, which is still in the stage of loss. Due to cost rise and net profit decrease of
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Semi-Annual Report 2011
Guanghui Expressway and Yuezhao Expressway and net profit decrease of joint ventures and
affiliated companies, the Company's investment income accounted for on equity basis decreased.
Reasons for decreasing of Investment income：The growth rate of income was low while that of
cost and expenses was high. The fund demand of expansion projects and Guangle project was
partly satisfied by bank loans. Due to rise in interest rate, financial expenses increased apparently.
The investment income of the Company decreased.
(III). The scope of main operation and its operating status
The company belongs to the industry of infrastructure construction, with commercial development
and operation of expressways and large bridges in Guangdong Expressway system. The
expressway industry is an industry with special support form the state, and the Company’s
operation benefits from the support of the industrial policy of the country. Operating income and
profit of the main operation for the report period were RMB 501,059,949.79, coming form the toll
collection on Guangdong expressways and very large bridges.
The Status of key business in terms of industry of business and product:
Unit：RMB’0000
The Status of key business in terms of industry of business
Increase/decreas Increase or
e of income Increase/decrease decrease of Gross
In terms of business line Income from Cost of main Gross profit from main of cost of main profit ratio from
or product main operation operation ratio（%） operation over operation over the main operation
the previous year previous year (%) over the previous
(%) year (%)
Highway
50,758.86 24,855.74 51.03% 2.58% 4.69% -0.99%
transportation
Other 266.00 228.90 13.95% 5.17% 25.00% -13.65%
The status of key business in terms of product business
Toll income 50,758.86 24,855.74 51.03% 2.58% 4.69% -0.99%
Other 266.00 228.90 13.95% 5.17% 25.00% -13.65%
The status of key business in terms of areas
Unit：RMB’0000
Increase/decrease of income
Area Income from key business
（％）
Guangdong 510,248,592.90 2.59%
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Semi-Annual Report 2011
(IV) In the report period, there was no material change in the Company's profit structure, main
operation or its structure and profitability of main operation.
(V) The Company did not conduct other business operation activities having material influence on
the profit for the report period.
(VI) Particulars about single joint venture generating investment income that exceeded 10% of the
net profit of the Company
1.Shenzhen Huiyan Expressway Co., Ltd.: It is mainly engaged in the organization and
management of the construction of the main line of Shenzhen section of Huiyan Expressway, its
operation, management and maintenance after its completion, collection of toll and road service
management, the construction management of road, bridge and culvert projects and engineering
consultation. The net profit of this company for Jan - June 2011 was RMB 69.5976 million. The
Long-term equity investment income obtained by the Company under Equity method was RMB
23.1992 million.
2. Jingzhu Expressway Guangzhu Section Co., Ltd.： It is mainly engaged in the construction,
operation and management of expressways from Guangzhou to Zhuhai and Jiangmen and
provision of the services supporting expressway including fueling, salvation, parts and
components supply. The net profit of this company for Jan - June 2011 was RMB 327.6538
million. The Long-term equity investment income obtained by the Company under Equity method
was RMB65.5308 million.
3.Guangdong Guanghui Expressway Co., Ltd.: It is mainly engaged in the investment in and
construction of Guanghui Expressway and supporting facilities, the toll collection and
maintenance management of Guanghui Expressway. The net profit of this company for Jan - June
2011 was RMB 239.5809 million. The Long-term equity investment income obtained by the
Company under Equity method was RMB 71.8743 million.
(VII) Problems and difficulties occurred in operation
Road and bridge toll income is the main income source of the Company. Therefore, toll policies
and toll standard have great influence of the operating income of the Company. Not long ago,
Ministry of Transportation and Communications of the People's Republic of China ("Ministry of
Communications"), State Development and Reform Commission ("Development and Reform
Commission"), Ministry of Finance of the People's Republic of China ("Ministry of Finance"),
Ministry of Supervision and Work Style Correction Office of the State Council jointly issued the
Notice of Special Rectification Concerning Toll Highways (Jiao Gong Lu Fa (2011) No. 283),
which will have certain influence on expressway business. As toll policies are formulated by
relevant national regulatory authority, the Company is unable to predict or affect the formulation
and revision of toll policies by the state. Vehicle toll standards shall be submitted to People's
Government of the same level for examination and approval after examination by competent
departments in charge of communications under the people's governments of provinces,
autonomous regions and municipalities directly under central government and competent
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Semi-Annual Report 2011
departments of the same level in charge of price. Therefore, the trend of toll adjustment and
whether the toll can be correspondingly adjusted when price level and the Company's costs rise in
the future are still subject to relevant national policies and examination and approval by
governmental departments. The Company is unable to adjust toll standards timely according to its
own operating costs or the change of market supply and demand. Therefore, the change of toll
polices and adjustment of toll standards will also have certain influence on the Company's
expressway business.
The countermeasures of the Company mainly include paying close attention to policy change and
seeking investment opportunities outside the scope of key business.
II. Particulars about investments
(I) The Company did not use raised fund in the report period.
(II) The actual progress of important investment projects utilizing non-raised funds
1. The Company signed the Contract for Share Capital Increase of Ganzhou Gankang Expressway
Co., Ltd. with Ganzhou Expressway Co., Ltd. in December 2007. The Company is expected to
invest RMB289.3002 million in 30% equity of Ganzhou Gankang Expressway Co., Ltd. for
constructing Ganzhou-Dayu expressway (from Maodian to Sanyi section) and Ganzhou highway
bridge. On January 11, 2008, the first provisional shareholders' general meeting of the Company in
2008 examined and adopted the resolution concerning this investment. The procedure of industrial
and commercial registration of shareholder change of Ganzhou Gankang Expressway Co., Ltd.
was completed on April 16, 2008. In the report period, The Company don’t invested to Gankang
company , As of June 30, 2011, The Company had accumulated increased capital RMB 226.3790
million in total.
2. The Company held the 15th meeting of the fifth board of directors on September 10, 2009 to
review and approve the Motion of Investing in 30% Equity of Guangzhou-Lechang Expressway
Project. The board of directors consented to invest RMB2,561.914 million in 30% equity of
Guangzhou-Lechang highway project. Total investment and capital invested by shareholders shall
be the final accounts approved by the competent government authority. The board of directors
authorized the management team of the Company to negotiate about and modify the contracts and
articles related to the project, and deal with other matters that are not mentioned herein. The board
of directors authorized the chairman to sign the related contracts. The Company held the second
extraordinary general meeting of shareholders on September 28, 2009 to review and approve the
preceding motion and its contents. In the report period, The Company invested RMB 290 million
to Guangle company ,As of June 30, 2011, The company has invested accumulated RMB629.9975
million.
III. Operation performance
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Semi-Annual Report 2011
Targets for operating income and operating cost in 2011 were RMB1036 million and RMB578
million respectively quoted in the 2010 annual report. As of June 30, 2011, operating income of
the Company was RMB0.0513 million, which accounts for 49.52% of the target; operating cost of
the Company is RMB0.0252 million, which accounts for 43.60% of the target.
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Semi-Annual Report 2011
VI . Important events
I. Administrative Position
The Company accepted the site inspection by Guangdong Bureau of CSRC ("Guangdong
Securities Regulatory Bureau") in the period from July 8, 2010 to the end of December of 2010
and received the Notice of Site Inspection Result ((2011) No. 2) dated January 17 ("Notice") from
Guangdong Securities Regulatory Bureau on January 25, 2011. After receipt of the Notice, the
Company conducted in-depth inspection and analyzed relevant circumstances according to the
requirements of the Notice, the Company Law, the Securities Law, Stock Listing Rules of
Shenzhen Stock Exchange and the Articles of Association of the Company, pertinently made a
rectification plan and carried out rectification.
1. From 2011, annual financial budget will be submitted to the board of directors and shareholders'
general meeting for examination and decision.
In the report period the Company revised partial clauses of the Articles of Association of the
Company, Independent Director System, Rules of Procedure of the Board of Directors, Rules of
Procedure of the Supervisory Committee, Rules of Procedure of Shareholders' General Meeting,
Regulations on Management of Related Transactions, Internal Important Information Report
System, Regulations on Management of Relationship with Investors, Regulations on Management
of Information Disclosure Affairs, Internal Control System, Regulations on Management of Raised
Proceeds and Detailed Working Rules of General Manager and formulated Regulations on
External Information Report and Use, Regulations on Management of Insider Information and
Regulations on Management of the Company's Shares Held by Directors, Supervisors and Senior
Executives and the Change Thereof. Through the revision and supplement of regulations and
systems, the Company unceasingly supplemented and improved its corporate governance structure
to form more effective restriction relationship between the right owning, decision making,
supervision and execution bodies and further enhance its level of standardized operation.
II. Particulars and execution of profit distribution and capitalizing of common reserves for the
previous fiscal year
According to the resolution passed at the annual shareholders’ general meeting 2010, The
Company's dividend distribution plan for 2010: With the existing total share capital, i.e.,
1,257,117,748 shares, as the base, cash dividend of RMB 1.00 (including tax) is to be distributed
for every 10 shares，that is :
1. Cash dividend of RMB 0.9 is to be actually paid for every 10 shares to individual shareholders
of A shares, investment funds and qualified foreign institutional investors. our company did not
withhold the income tax,the taxpayers would pay the income tax from the local location for the
non-resident enterprises
2. Cash of RMB 0.9 is to be paid to individual shareholders and non-resident enterprises holding B
shares for every 10 shares.
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Semi-Annual Report 2011
Cash dividend of RMB 125,711,774.80 is to be distributed, The undistributed profit was carried
forward to the
The Company had implemented this distribution plan on July 21，2011.
III. In the report period, What the Company was involved in significant lawsuit, arbitrations
The lawsuit happened during the report period:
(1). On June 30, 2003, China International Economic and Trade Arbitration Commission
Shenzhen Branch made final award on the lawsuit of the dispute in the contract and additional
agreement of the China-foreign constructed and operated Fozhan Expressway Dianbai (Magang)
to Zhanjian (Suixi) that at the September 25, 2001: (1) The arbitral award includes ruling
Southeast Asia Maofa Co., Ltd. to pay the default fine and part of expenses for handling the
arbitration case and allocated expenses of each party involved in this arbitration case to the
Company. total is RMB 4,413,000 and related interest, Our company has submitted 《the
application of enforcement action> to Guangzhou Intermediate People's Court.In April 2005,
Guangzhou Municipal Intermediate People's Court made a judgment concerning entirely
auctioning Maozhan Company’s stocks held by Southeast Asia Maofa Co., Ltd. and made an
announcement of auction. Guangzhou Municipal Intermediate People's Court submitted this
enforcement case to Guangdong Higher People's Court for jurisdiction transfer in July 2005
according to the notice of Guangdong Higher People's Court regarding liquidation of outstanding
cases beyond the legal time limit of enforcement. On September 2, 2008, Yangjiang Municipal
Intermediate People's Court made the following ruling: (i) canceling the seizure of 35% of
Maozhan Company’s stocks and incomes held by Southeast Asia Maofa Co., Ltd. as the party
subject to enforcement; (ii) freezing the debts of RMB5,334,500 that are due to Maozhan
Company by Southeast Asia Maofa Co., Ltd. as the party subject to enforcement, and seizing
RMB5,334,500 that is due to Southeast Asia Maofa Co., Ltd. as the party subject to enforcement
by Maozhan company for repayment of debts, and serving a notice of Assisting in Enforcement to
Maozhan Company. This enforcement case has not finally been closed yet. In May 2011,
Guangzhou Municipal Intermediate People's Court drew up a plan for allocation in which request
tranfering RMB 3,479,000 to the account of Guangdong Expressway technology Investment Co.,
Ltd. Guangzhou Municipal Intermediate People's Court issued the (2010) SZFZ Zi No. 1910
Written Ruling to enforce the measures.
(2) Guangdong Expressway technology Investment Co., Ltd. as the holding subsidiary of the
Company filed a lawsuit with the People’s Court of Yuexiu District of Guangzhou in May 2006,
requesting Wang Jianji, as the guarantor of Beijing Green Angel Organic Fertilizer Co., Ltd. for
the RMB8 million entrusted loan purpose, to perform its guarantee liabilities, repay RMB8 million
and accrued interests and disburse a default fine of RMB 93,716.00. The People’s Court of Yuexiu
District of Guangzhou made the (2006) YFMEC Zi No. 1708 Judgment of First Instance that the
Defendant Wang Jianji should repay the principal of the RMB8 million entrusted loan and its
overdue interests as well as pay a default fine of RMB 93,716.00 to the technology company. The
Defendant Wang Jianji lodged an appeal against the Judgment of First Instance. Guangzhou
16
Semi-Annual Report 2011
Municipal Intermediate People's Court made the (2007) SZFMEZ Zi No. 1057 Judgment of
Second Instance to affirm the original judgment on August 24, 2007.
Wang Jianji did not accept the civil award of (2007) Suizhongfamingzhong No.1057 by
Guangdong Guangzhou Intermediate People's Court and applied to Guangdong Provincial
Higher People's Court for retrial. On November 26, 2007, Guangdong Provincial Higher People's
Court made (2007) Yegaofaliming No. 1010 award, This case entered the retrial proceedings. On
September 11, 2008, Guangzhou Municipal Intermediate People's Court issued the (2008)
SZFSJMZ Zi No. 66 Written Civil Ruling that the (2006) SZFLMZ Zi No. 1146 Written Civil
Ruling and the (2006) YFMEC Zi No. 1708 Written Civil Ruling made by the People’s Court of
Yuexiu District of Guangzhou of Guangdong should be rescinded, the (2007) SZFMEZ Zi No.
1057 Paper of Civil Judgment and the (2006) YFMEC Zi No. 1708 Paper of Civil Judgment made
by the People’s Court of Yuexiu District of Guangzhou of Guangdong should be rescinded and this
case should be transferred to the People’s Court of Xicheng District of Beijing for processing. On
September 16, 2009, The case came to trial. In April 2010, the court decided in the first instance
that the Defendant Wang Jianji should pay the principal of entrusted loan, i.e., RMB 8 million, and
interest incurred to Guangdong High-tech. The Defendant Wang Jianji lodged an appeal against
the Judgment of First Instance. The hearings for the second instance of this case was held in
Beijing First Intermediate People's Court on July 15, 2010. So far, no judgment has been made for
the trial of second instance. On July 25, Guangdong High-tech received the notice of aceptance
from Beijing Higher People's Court (2011) GMSZ No. 2516.Wang Jianji appealed against
sentence and apply for retrial. For the time being, Beijing Higher People's Court registerred and
examined.
(3) On June 15, 2007 morning, the Nanguiji 035 ship owned by Yang Xiong, Foshan Nanhaiyu
Ship Co., Ltd. heated Jiujiang Bridge on 325 National Road owned by the controlling company of
the company, and resulted in more than 200 meters of Jiujiang Bridge collapsed.
On June 19, 2007, The Ministry of Communications, the State Production Safety Supervision
and Administration Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the
Guangdong"6.15 "Jiujiang Bridge Collision Accident", initially determined the causes of the
accident are: the incident ship suddenly met heavy fog on the way from Foshan Gaoming to Sunde,
the captain neglected looking out, did not take proper measures and deviated from the main
channel, touched the 325 National Road Jiujiang Bridge the non-navigation bridge pier and caused
the collapsion of part of the Jiujiang bridge. The accident was an unilateral responsibility of the
ship.
On July 19, 2007,Fokai Expressway Co., ltd. applied preservation of property to Guangzhou
Maritime Court. On August 22, 2007, Fokai Company officially prosecuted to Guangzhou
Maritime Court, asking Foshan South Sea Shipping Company Limited and Yang Xiong to
undertake the conpensation 25,587,684 yuan for the loss caused by collapsion of Jiujiang Bridge.
After the court accepted the case, The Court, on November 5, 2007, decided to suspend the
proceeding. In September 2008, Jiujiang Bridge accident investigation report was officially
reported and resumed the proceedings. On December 5, 2008, Guangzhou Marine Court opened a
court trial to proceeded the case. Currently, Guangzhou Haizhu prosecutorial office was intend to
17
Semi-Annual Report 2011
prosecute the accident captain Shi Guide, therefore, on January 5, 2009, Guangzhou Maritime
Court ruled the suspension of the case. At present, no further notice related to this case has been
received from the court and its hearing is still in suspense.
IV. The equity of other listed companies and financial enterprises held by the Company
Unit：RMB
The Changes of
Loss and
proportion owner’s
Name of Initial gain in Accounting
to the Book value at equity in Origin of
subjects investment Number held the calculation
equity of period end the equity
held amount reporting subjects
the reporting
period
company period
China
Long-term Subscrib
Everbright 804,000,000.0 -146,400, 528,000,00
528,000,000.00 0.59% 0.00 equity e on
Bank Co., 0 000.00 0.00
investment 2009
Ltd.
Sharehol
Huaxia Long-term
der
Securities 5,400,000.00 5,400,000 0.27% 0.00 0.00 0.00 equity
investme
Co., Ltd. investment
nt
Huazheng Dividen
Long-term
Assets d
1,620,000.00 1,620,000 0.54% 226,800.00 0.00 0.00 equity
Manageme Investm
investment
nt Co., Ltd. ent
Kunlun Long-term
Purchas
Securities 30,000,000.00 30,000,000 5.74% 0.00 0.00 0.00 equity
ed
Co., Ltd. investment
146,400,0
Total 565,020,000.00 277,020,000 - 528,226,800.00 0.00 - -
00.00
V. The progress of the event after the publishing of asset reorganization report or announcement of
acquisition or disposal of assets and its influence on the operating results and financial status for
the report period.
On March 14, 2011, the Company issued the Announcement of Suspension of Listing to announce
its planning of important matters.
On April 11, 2011, the Company issued the Announcement of Significant Asset Reorganization
and Continuation of Listing Suspension to announce that Guangdong Communication Group Co.,
Ltd., the controlling shareholder of the Company, is further planning significant asset
reorganization concerning the Company.
18
Semi-Annual Report 2011
On June 13, 2011，the Company issued the Preplan for Significant Asset Reorganization and
Related Transaction through Share Issue to Purchase Assets, which was examined and adopted at
the 14th (provisional) meeting of the sixth board of directors of the Company.
On June 28, 2011, the Company issued the Report on Significant Asset Reorganization and
Related Transaction through Share Issue to Purchase Assets, which was examined and adopted at
the 15th (provisional) meeting of the sixth board of directors of the Company. The Company
planned to issue shares to Guangdong Highway Construction Co., Ltd. to acquire 100% equity of
Guangzhou Guangzhu Communication Investment Management Co., Ltd. held by Guangdong
Highway Construction Co., Ltd.
On July 13, 2011, the second provisional shareholders' general meeting of the Company in 2011
vetoed the said Report on Significant Asset Reorganization and Related Transaction through Share
Issue to Purchase Assets and related eight proposals .
The announcements of the above-mentioned matters were published on Securities Times and
www.cninfo.com.cn on March 14, April 11, June 13, June 28 2011.
The above-mentioned matters have no significant influence on the Company's operating results
and financial position in the report period.
VI. Not significant acquisition in the report period.
VII. Significant related transactions
（1）Refer to the said "V. Significant related transited in the report period and subsequent
progress" for the details of the related transactions of the Company concerning assets acquisition
and sales.
（2）Refer to the said "V. Significant assets acquisition and sales and asset reorganization occurred
in the report period and subsequent progress" for the details of the related transactions of the
Company concerning assets acquisition and sales.
（3） In the report period, the Company and related parties were not involved in material claims
and debts or guarantee.
VIII. Important contracts and implementing
1. In the report period, the Company did not hold in trust or contract for or lease the material
assets of other companies nor did other companies hold in trust, contract for or lease the material
assets of the Company.
2. In the report period, the Company neither provided material guarantee to other companies nor
provided guarantee to its controlled subsidiaries.
3. In the report period, the Company did not entrust others to manage its material cash assets
19
Semi-Annual Report 2011
management
IX. In the reporting period, there is no significant commitments concerning the Company or the
shareholders hold 5% share capital for disclosure. However the commitment issues made by the
shareholders during share equity relocation program were under processing and carried over to the
report term.
In the report period, there is no significant commitments concerning the Company, board members,
and higher management or the shareholders hold 5% share capital for disclosure to the report
period.
X. The special statement and independent opinions of the independent directors of the Company
on fund occupation by related parties and external guarantee of the Company
According to relevant regulations including the Guiding Opinions on Establishment of
Independent Director System by Listed Companies, Guidelines for Governance of Listed
Companies and Stock Listing Rules of Shenzhen Stock Exchange, we, as independent directors of
Guangdong Expressway Development Co., Ltd. ("the Company"), make special statement and
express independent opinions on the Company's external guarantee on accumulative basis and in
current period and status of fund occupation by related parties as follows:
According to the Circular on Certain Issues Relating to Standardization of Fund Transfer Between
Listed Companies and Their Related Parties and Guarantees Provided by Listed Companies
(Zheng Jian Fa (2003) No. 56 Document) and the Circular of Regulating External Guarantees
Provided by Listed Companies (Zheng Jian Fa (2005) No. 120 Document), we seriously audited
and confirmed the external guarantees provided by the Company and the status of fund occupation
by the controlling shareholder and other related parties of the Company with the attitude of being
responsible to the Company, all shareholders and investors and according to the principle of
seeking truth from facts.
1. According to our prudent examination and inspection, the Company strictly complied with
relevant provisions of the Articles of Association of the Company, seriously implemented the
provisions of Zheng Jian Fa (2003) No. 56 Document and (2005) No. 120 Document and strictly
controlled the risk of external guarantee. In the report period, the Company did not provide
guarantee to the controlling shareholder and related parties or other parties. At the end of the
report period, there was no external guarantee on accumulative basis.
2. In the report period, The fund transfers between the Company and related parties were all for
normal operation. The related parties did not occupy the funds of the Company in violation of
regulations.
XI GP Certified public Accountants audited the financial report of the Company for this Report
period. The financial report of the semi-annual report has not been audited.
20
Semi-Annual Report 2011
XII. In the report period, none of the directors, supervisors, executives, shareholders, substantial
dominators, buyer of the Company was investigated by relative departments, executed by legal &
discipline departments, delivered to legal departments, appeared for crime, investigated or
punished by China Securities Regulatory Commission, restricted to security market, criticized
publicly, regarded as improper person, punished by other executive departments, or publicly
condemned by the Stock Exchange.
XIII. The registration form of acceptance of investigation, communication and interview in the
report period for future reference
Content of discussion and
Date Place Mode Visitor
materials provided
The main content of
communication is the significant
asset reorganization of the
Securities times
June 13, 2011 The Company Telephone Company. All the information
journalist
provided by the Company was
mentioned in relevant
announcements disclosed.
The main content of
communication is the significant
asset reorganization of the
Huaxia Securities
June 15, 2011 The Company Telephone Company. All the information
times journalist
provided by the Company was
mentioned in relevant
announcements disclosed.
The main content of
communication is the significant
asset reorganization of the
Investor Journal
June 15, 2011 The Company Telephone Company. All the information
journalist
provided by the Company was
mentioned in relevant
announcements disclosed.
The main content of
communication is the significant
asset reorganization of the
Weekly on stocks
June 22, 2011 The Company Telephone Company. All the information
journalist
provided by the Company was
mentioned in relevant
announcements disclosed.
21
Semi-Annual Report 2011
VII Finacial Report (Uncensored)
Auditors’ Report
GHSZZD[2011]No.11004480010
To all shareholders of Guangdong Provincial Expressway Development Co., Ltd.:
We audited accompanying financial statements of Guangdong Provincial Expressway
Development Co., Ltd. (hereinafter referred to as "the Company"), including Consolidation and
parent Company balance sheet on June 30, 2011, Consolidation and parent Company profit
statement, Consolidation and parent Company cash flow statement from January -June 2011 and
Consolidation and parent Company statement of change in shareholders' equity and the notes to
financial statements. Management of Guangdong Expressway Company is responsible for the
financial statements; our responsibility is to express a review report on the financial statements
based on our review.
We conducted our review according to the provisions of “Chinese CPA Standards on Review
Engagements No. 2101 – Engagements to Review Financial Statements”. Such standards require
that we plan and perform the review to obtain limited assurance whether the financial statements
are free from material misstatement. A review limits to enquiring for the relevant personnel and
implementation of analysis procedure for the financial data, and provides the lower assurance than
audit. We did not conduct the auditing, thus we did not express any auditing opinion.
Based on our review, we believed that the financial statements was prepared in accordance with
the provisions of Accounting Standard for Business Enterprises in full, and gave a true and fair
view of the financial status, financial performance and cash flows for the entity reviewed.
GP Certified public Accountants
Chinese C.P.A.: Wang Shaohua
Chinese C.P.A.: Yao Jing
Guangzhou , China August 9, 2011
22
Semi-Annual Report 2011
Financial Statement
Balance Sheet
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
June 30,2011 Unit: RMB
Year-end balance Year-beginning balance
Items Parent Company. Parent Company.
Consolidated Consolidated
Current asset：
Monetary fund 263,138,688.46 135,341,856.69 258,881,333.75 179,597,767.35
Settlement provision
Outgoing call loan
Trading financial assets
Bill receivable
Account receivable 28,880,874.03 18,043,508.27
Prepayments 163,352,203.10 195,653,487.32
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable 91,796.25
Dividend receivable 163,878,984.67 212,794,561.01 19,662,486.37
Other account receivable 34,671,913.22 4,786,689.54 31,363,602.07 4,079,305.90
Repurchasing of
financial assets
Inventories 218,997.00 279,948.92
Non-current asset due in 1
year
Other current asset 105,000,000.00
Total of current assets 654,141,660.48 458,014,903.49 504,221,880.33 203,339,559.62
Non-current assets：
Loans and payment on
other’s behalf disbursed
Disposable financial asset 804,000,000.00 804,000,000.00 950,400,000.00 950,400,000.00
Expired investment in
possess
Long-term receivable
Long term share equity
2,760,856,936.54 4,275,615,506.06 2,649,867,203.64 4,017,933,273.16
investment
Property investment 5,773,144.78 5,521,006.53 6,005,251.48 5,753,113.23
Fixed assets 4,195,633,530.96 5,822,106.16 3,782,771,159.07 5,983,727.98
Construction in progress 2,400,263,255.08 2,573,858,108.94
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 55,200,994.15 59,244,651.25
R & D petrol
Goodwill
Long-germ expenses to be
257,131.04 191,564.80 95,827.54
amortized
Differed income tax asset
Other non-current asset
Total of non-current assets 10,221,984,992.55 5,091,150,183.55 10,022,242,201.92 4,980,070,114.37
Total of assets 10,876,126,653.03 5,549,165,087.04 10,526,464,082.25 5,183,409,673.99
Current liabilities
23
Semi-Annual Report 2011
Short-term loans 936,000,000.00 536,000,000.00 500,000,000.00 200,000,000.00
Loan from Central Bank
Deposit received and hold
for others
Call loan received
Trade off financial
liabilities
Bill payable
Account payable 98,525,682.97 121,223,271.87
Advance payment 5,868,000.34 6,441,245.88
Selling of repurchased
financial assets
Fees and commissions
receivable
Employees’ wage payable 2,610,696.28 202,756.00 949,773.92 133,219.71
Tax payable 18,858,519.81 176,464.90 1,702,514.30 521,312.74
Interest Payable 41,635,005.98 34,752,035.27 17,571,390.99 11,333,333.33
Dividend Payable 154,139,309.18 137,834,117.06 18,997,256.40 12,443,094.27
Other account payable 255,577,326.04 3,408,343.65 237,781,580.86 2,234,014.32
Reinsurance fee payable
Insurance contract
provision
Entrusted trading of
securities
Entrusted selling of
securities
Non-current liability due in
237,700,000.00 327,000,000.00
1 year
Other current liability 80,709,785.48 70,804,209.27
Total of current liability 1,750,914,540.60 793,083,502.36 1,231,667,034.22 297,469,183.64
Non-current liabilities：
Long-term loan 3,468,264,803.54 3,575,964,803.54
Bond payable 792,642,890.12 792,642,890.12 791,524,406.75 791,524,406.75
Long-term payable 2,022,210.11 2,022,210.11 2,022,210.11 2,022,210.11
Special payable
Expected liabilities
Differed income tax
139,036,901.40 125,310,513.48
liability
Other non-current
liabilities
Total of non-current
4,401,966,805.17 794,665,100.23 4,494,821,933.88 793,546,616.86
liabilities
Total of liability 6,152,881,345.77 1,587,748,602.59 5,726,488,968.10 1,091,015,800.50
Owners’ equity
Share capital 1,257,117,748.00 1,257,117,748.00 1,257,117,748.00 1,257,117,748.00
Capital reserves 1,810,758,715.57 1,810,906,856.32 1,957,158,715.57 1,957,306,856.32
Less：Shares in stock
Special reserve
Surplus reserves 164,481,109.54 164,481,109.54 164,481,109.54 164,481,109.54
Common risk provision
Undistributed profit 923,948,013.67 728,910,770.59 904,494,101.24 713,488,159.63
Different of foreign
currency translation
Total of owner’s equity
4,156,305,586.78 3,961,416,484.45 4,283,251,674.35 4,092,393,873.49
belong to the parent
24
Semi-Annual Report 2011
company
Minor shareholders’ equity 566,939,720.48 516,723,439.80
Total of owners’ equity 4,723,245,307.26 3,961,416,484.45 4,799,975,114.15 4,092,393,873.49
Total of liabilities and
10,876,126,653.03 5,549,165,087.04 10,526,464,082.25 5,183,409,673.99
owners’ equity
25
Semi-Annual Report 2011
Profit statement
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
January-June 2011 Unit：RMB
Current term Same period last year
Items
Consolidated Parent Company Consolidated Parent Company
I. Total business income 513,043,078.52 1,790,886.95 501,059,949.79 6,015,720.00
Incl：Business income 513,043,078.52 1,790,886.95 501,059,949.79 6,015,720.00
Interest income
Insurance fee earned
Fee and commission
received
II.Total business cost 436,360,804.01 63,770,667.95 389,282,743.21 44,248,588.33
Incl：Business cost 251,728,804.04 232,106.70 241,612,200.11 232,106.70
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves
Insurance policy dividend
paid
Reinsurance expenses
Business tax and surcharge 18,846,946.70 101,901.46 17,664,837.45 306,200.15
Sales expense
Administrative expense 60,950,667.18 31,963,844.23 47,100,615.59 20,286,182.17
Financial expenses 104,842,371.93 31,472,815.56 82,905,090.06 23,424,099.31
Asset impairment loss -7,985.84
Add：Gains from change
of fir value （“-”for loss）
Investment gain（“-”for loss）170,469,406.79 199,722,496.76 190,006,307.13 220,193,605.69
Incl: investment gains from
147,765,406.79 147,765,406.79 190,006,307.13 190,006,307.13
affiliates
Gains from currency
exchange（“-”for loss）
III. Operational profit（“-”for
247,151,681.30 137,742,715.76 301,783,513.71 181,960,737.36
loss）
Add：Non-business income 4,541,890.38 3,391,900.00 15,990,763.99 266,710.70
Less：Non business expenses 54,762,939.21 230.00 4,622,504.88 163,965.70
Incl：Loss from disposal of
54,620,542.73 4,310,379.77
non-current assets
IV.Gross profit(“-”for loss） 196,930,632.47 141,134,385.76 313,151,772.82 182,063,482.36
Less：Income tax expenses 40,695,134.57 45,276,305.33
V. Net profit（“-”for net loss）156,235,497.90 141,134,385.76 267,875,467.49 182,063,482.36
Net profit attributable to the
145,165,687.23 141,134,385.76 237,803,790.41 182,063,482.36
owners of parent company
Minor shareholders’ equity 11,069,810.67 30,071,677.08
VI. Earnings per share：
（ I ） Basic earnings per
0.12 0.11 0.19 0.14
share
(II)Diluted earnings per
0.12 0.11 0.19 0.14
share
VII. Other comprehensive
-146,400,000.000 -146,400,000.000
income
VIII. Total comprehensive 9,835,497.90 -5,265,614.24 267,875,467.49 182,063,482.36
26
Semi-Annual Report 2011
income
Total comprehensive income
attributable to the owner of -1,234,312.77 -5,265,614.24 237,803,790.41 182,063,482.36
the parent company
Total comprehensive
income attributable minority 11,069,810.67 30,071,677.08
shareholders
Enterprise combination under same controlling at the end of current period. the net profit for the
enterprise to be combined is 0.00.
27
Semi-Annual Report 2011
Cash flow statement
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
January-June 2011 Unit：RMB
Current term Same period last year
Item
Consolidated Parent Company Consolidated Parent Company
I. Net cash flow from
business operation
Cash received from sales of
products and providing of 502,947,560.33 481,910,013.25
services
Net increase of customer
deposits and capital kept for
brother company
Net increase of loans from
central bank
Net increase of inter-bank
loans from other financial
bodies
Cash received against
original insurance contract
Net cash received from
reinsurance business
Net increase of client deposit
and investment
Net increase of trade
financial asset disposal
Cash received as interest,
processing fee and
commission
Net increase of inter-bank
fund received
Net increase of
repurchasing business
Tax returned
Other cash received from
20,242,091.83 14,495,007.95 477,063,376.90 424,663,023.39
business operation
Sub-total of cash inflow 523,189,652.16 14,495,007.95 958,973,390.15 424,663,023.39
Cash paid for purchasing of
67,332,165.99 33,777,904.47
merchandise and services
Net increase of client trade
and advance
Net increase of savings n
central bank and brother
company
Cash paid for original
contract claim
Cash paid for interest,
processing fee and
commission
Cash paid for policy
dividend
Cash paid to staffs or paid
67,207,759.01 17,539,401.10 54,057,871.21 14,559,140.80
for staffs
Taxes paid 26,230,492.43 67,738.05 44,794,920.28 338,241.53
Other cash paid for
50,796,758.42 14,401,140.87 497,400,289.05 458,664,729.00
business activities
28
Semi-Annual Report 2011
Sub-total of cash outflow
211,567,175.85 32,008,280.02 630,030,985.01 473,562,111.33
from business activities
Cash flow generated by
311,622,476.31 -17,513,272.07 328,942,405.14 -48,899,087.94
business operation, net
II.Cash flow generated by
investing
Cash received from
investment retrieving
Cash received as investment
185,600,689.22 185,600,689.22 202,177,234.59 212,702,046.78
gains
Net cash retrieved from
disposal of fixed assets,
62,807.00 13,500.00 477,817.00 305,800.00
intangible assets, and other
long-term assets
Net cash received from
disposal of subsidiaries or
other operational units
Other investment-related
101,572,247.50 306,409,170.00
cash received
Sub-total of cash inflow due
185,663,496.22 287,186,436.72 202,655,051.59 519,417,016.78
to investment activities
Cash paid for construction of
fixed assets, intangible assets 364,026,349.12 508,036.00 395,583,707.51 1,278,945.00
and other long-term assets
Cash paid as investment 290,000,000.00 436,692,500.00 355,917,500.00 355,917,500.00
Net increase of loan against
pledge
Net cash received from
subsidiaries and other
operational units
Other cash paid for
205,000,000.00
investment activities
Sub-total of cash outflow
654,026,349.12 642,200,536.00 751,501,207.51 357,196,445.00
due to investment activities
Net cash flow generated by
-468,362,852.90 -355,014,099.28 -548,846,155.92 162,220,571.78
investment
III.Cash flow generated by
financing
Cash received as
48,897,500.00
investment
Incl: Cash received as
investment from minor 48,897,500.00
shareholders
Cash received as loans 786,000,000.00 386,000,000.00 1,378,210,000.00
Cash received from
bond placing
Other financing –related
ash received
Sub-total of cash inflow
834,897,500.00 386,000,000.00 1,378,210,000.00
from financing activities
Cash to repay debts 547,000,000.00 50,000,000.00 668,120,000.00
Cash paid as dividend,
126,890,429.62 7,719,200.23 111,537,594.78 2,778,781.69
profit, or interests
Incl: Dividend and
profit paid by subsidiaries to 3,508,270.73
minor shareholders
29
Semi-Annual Report 2011
Other cash paid for financing
activities
Sub-total of cash outflow
673,890,429.62 57,719,200.23 779,657,594.78 2,778,781.69
due to financing activities
Net cash flow generated by
161,007,070.38 328,280,799.77 598,552,405.22 -2,778,781.69
financing
IV.Influence of exchange rate
alternation on cash and cash -9,339.08 -9,339.08 -3,912.38 -3,912.38
equivalents
V.Net increase of cash and
4,257,354.71 -44,255,910.66 378,644,742.06 110,538,789.77
cash equivalents
Add: balance of cash and
cash equivalents at the 258,881,333.75 179,597,767.35 218,754,995.03 113,474,208.24
beginning of term
VI. Balance of cash and cash
263,138,688.46 135,341,856.69 597,399,737.09 224,012,998.01
equivalents at the end of term
30
Semi-Annual Report 2011
Consolidated Statement of Change in Owners’ Equity
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
June 30,2011 Unit：RMB
Amount of the Current term Amount of the previous term
Owner’s equity Attributable to the Parent Company Owner’s equity Attributable to the Parent Company
Total Total
Com Minor Com Minor
Capita Less: Specia Surplu of Capita Less: Specia Surplu of
Items Share mon Attrib shareh Share mon Attrib shareh
l Shares l s owner l Shares l s owner
Capita risk utable Other olders’ Capita risk utable Other olders’
reserv in reserv reserv s’ reserv in reserv reserv s’
l provis profit equity l provis profit equity
es stock e es equity es stock e es equity
ions ions
1,257, 1,957, 164,4 904,4 516,7 4,799, 1,257, 1,534, 130,3 675,8 415,1 4,013,
I.Balance at the end of
117,7 158,7 81,10 94,10 23,43 975,1 117,7 906,8 42,18 66,78 83,41 416,9
last year
48.00 15.57 9.54 1.24 9.80 14.15 48.00 56.32 4.11 5.19 8.56 92.18
Add: Change of
accounting policy
Correcting of previous
errors
Other
1,257, 1,957, 164,4 904,4 516,7 4,799, 1,257, 1,534, 130,3 675,8 415,1 4,013,
II.Balance at the
117,7 158,7 81,10 94,10 23,43 975,1 117,7 906,8 42,18 66,78 83,41 416,9
beginning of current year
48.00 15.57 9.54 1.24 9.80 14.15 48.00 56.32 4.11 5.19 8.56 92.18
-146,4 19,45 50,21 -76,72 422,2 34,13 228,6 101,5 786,5
III.Changed in the
00,00 3,912. 6,280. 9,806. 51,85 8,925. 27,31 40,02 58,12
current year
0.00 43 68 89 9.25 43 6.05 1.24 1.97
145,1 11,06 156,2 388,4 49,85 438,3
（I） Net profit
65,68 9,810. 35,49 78,01 4,313. 32,32
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Semi-Annual Report 2011
7.23 67 7.90 6.28 35 9.63
-146,4 -146,4 422,4 422,4
（II）Other misc.income 00,00 00,00 00,00 00,00
0.00 0.00 0.00 0.00
-146,4 145,1 11,06 9,835, 422,4 388,4 49,85 860,7
Total of (I) and (II) 00,00 65,68 9,810. 497.9 00,00 78,01 4,313. 32,32
0.00 7.23 67 0 0.00 6.28 35 9.63
(III) Investment or 48,89 48,89 83,36 83,21
-148,1
decreasing of capital by 7,500. 7,500. 5,640. 7,500.
40.75
owners 00 00 75 00
48,89 48,89 84,13 84,13
1. Capital inputted
7,500. 7,500. 7,500. 7,500.
by owners
00 00 00 00
2．Amount of shares
paid and accounted as
owners’ equity
-148,1 -771,8 -920,0
3. Other
40.75 59.25 00.00
-125,7 -9,751 -135,4 34,13 -159,8 -31,67 -157,3
（IV）Profit allotment 11,77 ,029.9 62,80 8,925. 50,70 9,932. 91,70
4.80 9 4.79 43 0.23 86 7.66
34,13 -34,13
1.Providing of surplus
8,925. 8,925.
reserves
43 43
2.Providing of common
risk provisions
32
Semi-Annual Report 2011
-125,7 -9,751 -135,4 -125,7 -31,67 -157,3
3 ． Allotment to the
11,77 ,029.9 62,80 11,77 9,932. 91,70
owners (or shareholders)
4.80 9 4.79 4.80 86 7.66
4．Other
(V) Internal transferring
of owners’ equity
1. Capitalizing of
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
1,257, 1,810, 164,4 923,9 566,9 4,723, 1,257, 1,957, 164,4 904,4 516,7 4,799,
IV. Balance at the end of
117,7 758,7 81,10 48,01 39,72 245,3 117,7 158,7 81,10 94,10 23,43 975,1
this term
48.00 15.57 9.54 3.67 0.48 07.26 48.00 15.57 9.54 1.24 9.80 14.15
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Semi-Annual Report 2011
Parent Company Statement on Change in Owners’ Equity
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
June 30,2011 Unit：RMB
Amount of the Current term Amount of the previous term
Commo Commo
Less: Attribut Total of Less: Attribut Total of
Items Share Capital Special Surplus n risk Share Capital Special Surplus n risk
Shares able owners’ Shares able owners’
Capital reserves reserve reserves provisio Capital reserves reserve reserves provisio
in stock profit equity in stock profit equity
ns ns
1,257,1 1,957,3 4,092,3 1,257,1 1,534,9 3,454,3
I.Balance at the end of 164,481 713,488 130,342 531,949
17,748. 06,856. 93,873. 17,748. 06,856. 16,394.
last year ,109.54 ,159.63 ,184.11 ,605.59
00 32 49 00 32 02
Add: Change of
accounting policy
Correcting of previous
errors
Other
1,257,1 1,957,3 4,092,3 1,257,1 1,534,9 3,454,3
II.Balance at the 164,481 713,488 130,342 531,949
17,748. 06,856. 93,873. 17,748. 06,856. 16,394.
beginning of current year ,109.54 ,159.63 ,184.11 ,605.59
00 32 49 00 32 02
-146,40 -130,97
III.Changed in the 15,422, 422,400 34,138, 181,538 638,077
0,000.0 7,389.0
current year 610.96 ,000.00 925.43 ,554.04 ,479.47
0 4
141,134 141,134 341,389 341,389
（I） Net profit
,385.76 ,385.76 ,254.27 ,254.27
34
Semi-Annual Report 2011
-146,40 -146,40
422,400 422,400
（II）Other misc.income 0,000.0 0,000.0
,000.00 ,000.00
0 0
-146,40
141,134 -5,265,6 422,400 341,389 763,789
Total of (I) and (II) 0,000.0
,385.76 14.24 ,000.00 ,254.27 ,254.27
0
(III) Investment or
decreasing of capital by
owners
1. Capital inputted
by owners
2．Amount of shares
paid and accounted as
owners’ equity
3. Other
-125,71 -125,71 -159,85 -125,71
34,138,
（IV）Profit allotment 1,774.8 1,774.8 0,700.2 1,774.8
925.43
0 0 3 0
1.Providing of surplus 34,138, -34,138,
reserves 925.43 925.43
2.Providing of common
risk provisions
-125,71 -125,71
3 ． Allotment to the
1,774.8 1,774.8
owners (or shareholders)
0 0
4．Other -125,71 -125,71
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Semi-Annual Report 2011
1,774.8 1,774.8
0 0
(V) Internal transferring
of owners’ equity
1. Capitalizing of
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
1,257,1 1,810,9 3,961,4 1,257,1 1,957,3 4,092,3
IV. Balance at the end of 164,481 728,910 164,481 713,488
17,748. 06,856. 16,484. 17,748. 06,856. 93,873.
this term ,109.54 ,770.59 ,109.54 ,159.63
00 32 45 00 32 49
36
Semi-Annual Report 2011
I. Company Profile
1.The Company was established in February 1993, which was originally named as Guangdong
Fokai Expressway Co., Ltd.
On June 30, 1993, it was renamed as Guangdong Provincial Expressway Development Co., Ltd.
after reorganization pursuant to the approval of the Office of Joint Examination Group of
Experimental Units of Share Holding System with YLSB (1993)No. 68 document. The share
capital structure after reorganization is as follows:
Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong
Jiujiang Bridge Co. and Guangfo Expressway Co., Ltd. as of January 31, 1993 confirmed by
Guangdong State-owned Asset Management Dept., i.e.,RMB 418.2136 million, was converted
into 155.025 million shares. Guangdong Expressway Co. invested cash of RMB 115 million to
subscribe for 35.9375 million shares. Other legal persons invested cash of RMB 286.992 million
to subscribe for 89.685 million shares. Staff of the Company invested RMB 87.008 million to
subscribe for 27.19 million shares. The total is RMB 307.8375.
2 ． Pursuant to the approval of Guangdong Economic System Reform Committee and
Guangdong Securities Regulatory Commission with YTG (1996) No. 67 document, part of the
shareholders of non-state-owned legal person shares transferred 20 million non-state-owned legal
person shares to Malaysia Yibao Engineering Co., Ltd. in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996)
No. 24 approval document and that of Guangdong Economic System Reform Committee with
YTG (1996) No. 68 document, the Company issued 135 million domestically listed foreign
investment shares (B shares) to overseas investors at the price of HKD 3.54 (equivalent to RMB
3.8) with the par value of each share being RMB 1 during June to July 1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the
People’ s Republic of China with (1996) WJMZYHZ No. 606 document, the Company was
approved to be a foreign-invested joint stock company limited.
5．The Company distributed dividends and capitalized capital common reserve for the year 1996
in the following manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized
capital common reserve on 3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997)
No. 486 and No. 487 document, the Company issued 100 million public shares (A shares) at the
price of RMB 5.41 yuan/sheres in term of “payable in full on application, pro-rate placing and
subject to refund” with the par value of each share being RMB 1 in January 1998.
7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the
Company and pursuant to the approval of Guangzhou Securities Regulatory Office under CSRC
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Semi-Annual Report 2011
with GZZJH (2000) No. 99 and that of CSRC with ZJGSZ (2000) No. 98, the Company offered
3 Rights for every 10 shares of 764.256249 million shares at the price of RMB 11 per
Right.73,822,250 ordinary shares were actually placed to all
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong
Province with YBH (2000) No. 574 document, the state-owned shares were transferred to
Guangdong Communication Group Co., Ltd. (Group Co.) for holding and management without
compensation.
9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the
Company (132,722 shares held by directors, supervisors and senior executives are temporarily
frozen) were listed on February 5, 2001.As of June 30, 2011, the quantity of the shares subject to
sale restriction held by senior executives is 196,038.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the
Company capitalized capital common reserve into 419,039,249 shares on 5-for-10 basis with the
total share capital as of the end of 2000, i.e., 838,078,499 shares as base. The date of stock right
registration was May 21, 2001. The ex-right date was May 22, 2001.
11．On March 8, 2004,As approved by China Securities Regulatory Commission by document
Zheng-Jian-Gong-Si-Zi [2003]No.3, the 45,000,000 non -n egotiable fo reig n shares were
placed in Shenzhen Stock
12. On December 21, 2005, the Company's plan for share holding structure reform was voted
through at the shareholders' meeting concerning A shares. On January 26 2006, The Ministry of
Commerce of PRC issued “The approval on share converting of Guangdong Provincial
Expressway Development Co., Ltd.” to approve the share equity relocation and transformation.
On October 9 2006, according to the “Circular about implementing of share equity relocation
and relative trading” issued by Shenzhen Stock Exchange, the abbreviation ID of the
Company’s A shares was restored from “G-Expressway” “Expressway A”.
13. As of June 30, 2011，Registration capital :RMB1,257,117,748，Legal reprwsentative：Zhou
Yuming，Registration place:No.85, Baiyun Road, Guangzhou, Headquarters Office: No.85,
Baiyun Road, Guangzhou.，The company has set up: Investment Development Dept, Security
Affairs Department, Financial Management Dept, Base construction Dept, Audit and Supervise
Dept, Affairs Dept, Personnel Department , Party Work Dept and Law affairs Dept etc.
14. The Company is mainly engaged in the construction of expressways, grade highways and
bridges, tolling and maintenance management of highways and bridges, salvation, repair,
maintenance and cleaning of automobiles and concurrently engaged in automobile transport and
warehousing supporting its business.
15.The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai
Expressway and Jiujiang Bridge, investment in technological industries and provision of relevant
consultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangdong Maozhan
38
Semi-Annual Report 2011
Expressway Co.,Ltd, Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu Expressway
Guangzhu Co., Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao
Expressway Co., Ltd.,Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd.,
Guangzhou Guangle Expressway Co., Ltd. , China Everbright Bank, Huaxia Securities Co., Ltd
and Huazheng Asset Management Co., Ltd.<0}
16. Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal
representative: Zhu Xiaoling. Date of establishment: June 23, 2000. As of June 30,
2011,Registered capital: RMB 26.8 billion. It is a solely state-owned limited company. Business
scope：equity management, organization of asset reorganization and optimized allocation, raising
funds by means including mortgage, transfer of property rights and joint stock system
transformation, project investment, operation and management, traffic infrastructure construction,
highway and railway project operation and relevant industries, technological development,
application, consultation and services, highway and railway passenger and cargo transport, ship
industry, relevant overseas businesses（if the above mentioned business scope requires licenses to
operate, then operation licenses are required）.
II. Principal accounting policies, accounting estimates and early errors
（1）Basis for Preparing the Financial Statements
The company prepares the financial statements on the basis of a continuous operation, the actual
transactions, “Accounting Standards for Enterprises – Basic Standards”, other accounting
standards & related regulations. Furthermore, all the materials of financial statements of the
company meet the relevant disclosure requirements of financial statements and notes on the
“Editing and Reporting Rules Regarding Information Disclosure for Companies Publicly Issuing
Securities No. 15 – General Provisions of Financial Statements” promulgated and revised by
China Securities Regulatory Commission in 2010.
(2). Statement on the Accounting Standard Followed by the Company
The financial statements prepared by the Company comply with the requirements of corporate
accounting standards. They truly and completely reflect the financial situations, operating results,
equity changes and cash flow, and other relevant information of the company.
(3)Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on
December 31 as the fiscal year.
（4）Standard currency for bookkeeping<
The Company takes RMB as the standard currency for bookkeeping.<0}
（5）Accountings for Business Combinations under the Same Control & Business Combinations
39
Semi-Annual Report 2011
not under the Same Control
1.Business Combinations under the Same Control
The assets and liabilities that the company obtains in a business combination shall be measured
on the basis of their carrying amount in the combined party on the combining date. As for the
balance between the carrying amount of the net assets obtained by the combining party & the
carrying amount of the consideration paid by it (or the total par value of the shares issued), the
additional paid-in capital shall be adjusted. If the additional paid-in capital is not sufficient to be
offset, the retained earnings shall be adjusted.
The direct costs for the business combination of the company, including the expenses for audit,
assessment and legal services, shall be recorded into the profits & losses at the current period.
The handling fees, commissions & other expenses for the issuance of equity securities for the
business combination shall be credited against the surplus of equity securities; if the surplus is
not sufficient, the retained earnings shall be offset.
Where the accounting policies adopted by the combined parties are different from those adopted
by the company, the company shall adjust them on the combining date according to the
accounting policy it adopts, and shall, pursuant to the Accounting Standards for Enterprises,
recognize them on the basis of such adjustments.
2. Business Combinations not under the Same Control
The assets paid as the consideration for the business combination & the liabilities assumed on the
acquisition date shall be measured in accordance with the fair value. The difference between the
fair value & its carrying amount shall be recorded into the profits & losses at the current period.
The company will distribute the combination costs on the acquisition date.
The company shall recognize the positive balance between the combination costs & the fair
value of the identifiable net assets it obtains from the acquiree as Goodwill while it shall record
the negative balance between the combination costs & the fair value of the identifiable net assets
it obtains from the acquiree into the profits & losses of the current period.
As for the assets other than intangible assets acquired from the acquiree in a business
combination (not limited to the assets which have been recognized by the acquiree), if the
economic benefits brought by them are likely to flow into the enterprise and their fair values can
be measured reliably, they shall be separately recognized and measured in light of their fair
values. As for any intangible asset acquired in a combination, if its fair value can be measured
reliably, it shall be separately recognized as an intangible asset and shall measured in light of its
fair value. As for the liabilities other than contingent liabilities acquired from the acquiree, if the
performances of the relevant obligations are likely to result in any out-flow of economic benefits
from the enterprise, and their fair values can be measured reliably, they shall be separately
40
Semi-Annual Report 2011
recognized and measured in light of their fair values. As for the contingent liabilities of the
acquiree obtained in a combination, if their fair values can be measured reliably, they shall be
separately recognized as liabilities and shall be measured in light of their fair values.
（6）Methods for Preparing the Consolidated Financial Statements
The scope of the consolidated financial statements will be recognized on the basis of controlling.
All the subsidiaries will be included into the consolidated financial statements.
The accounting policies & accounting periods adopted by all the subsidiaries that have been
included into the scope of the consolidated financial statements should be consistent with those
adopted by the company. If the accounting policies & accounting periods adopted by the
subsidiaries are different from those adopted by the company, the company shall make necessary
adjustments according to the accounting policies & accounting periods it adopts when preparing
the consolidated financial statements.
After adjusting the long-term equity investments on its subsidiaries according to the equity
method, the company shall prepare the consolidated financial statements based on the financial
statements of the company & its subsidiaries, and other related documents.
The influences of the internal transactions between the company & its subsidiaries, and its
subsidiaries themselves on the consolidated balance sheet, consolidated profit statement,
consolidated cash flow statement & consolidated statement of changes in owner’s equity will be
counteracted at the preparation of the consolidated financial statements.
The portion of a subsidiary’s equity that is not attributable to the parent is treated as minority
shareholders’ interest and presented as “minority interest” in the consolidated balance sheet
within owners’ equity. The portion of net profits or losses of subsidiaries for the period
attributable to minority interest is presented in the consolidated income statement below the “net
profit” line item as “minority interest”. In the consolidated financial statements, when the
amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the
minority shareholders’ portion of the opening balance of owners’ equity of the subsidiary, the
excess amount should be still allocated against minority interest.
In the report period, If the subsidiary is added through the business combination under the same
control, the beginning balance of the consolidated balance sheet shall be adjusted. The incomes,
expenses & profits of the subsidiary incurred from the beginning of the current period to the end
of the reporting period shall be included into the consolidated profit statement. The cash flow
from the beginning of the current period to the end of the reporting period shall be included into
the consolidated cash flow statement.
In the report period, If the subsidiary is added through the business combination not under the
same control, the beginning balance of the consolidated balance sheet shall not be adjusted. The
incomes, expenses & profits of the subsidiary incurred from the acquisition date to the end of the
reporting period shall be included into the consolidated profit statement. The cash flow from the
41
Semi-Annual Report 2011
acquisition date to the end of the reporting period shall be included into the consolidated cash
flow statement.
For purchase of minority interests held by the minority shareholders of a subsidiary, when
preparing the consolidated financial statements, the difference between the long-term equity
investment newly gained by buying minority interests and the portion of net assets consistently
calculated from the acquisition date (or the consolidation date) pursuant to newly added
shareholding percentage entitled by the subsidiary should be adjusted to the owners’ equity (the
capital reserve). If the capital reserve is not sufficient to absorb the difference, any excess is
adjusted against retained earnings.
In the report period, If the company disposes its subsidiary, the incomes, expenses & profits
incurred from the beginning of the subsidiary to the disposal date shall be included into the
consolidated profit statement. The cash flow from the beginning of the subsidiary to the disposal
date shall be included into the consolidated cash flow statement.
（7） Recognition Standard of Cash & Cash Equivalents
The company recognizes its cash in vault & the deposits that are ready for payment at any time
as cash when preparing the cash flow statement.which are featured with short term (expire within
3 months since purchased), high liquidity, easy to convert to know cash, low in risk of value
change, could be recognized as cash equivalents. Equity investment are not recognized as cash
equivalents.
（8）Foreign Currency Transaction
The foreign currency transaction uses the spot rate at the time of the transaction as the exchange
rate to convert the currency into CNY for keeping account.
The balances of the foreign currency monetary items shall be converted according to the spot
rate on the balance sheet date. Except that the exchange balances on the foreign currency
borrowings for expenses on the assets eligible for capitalization shall be dealt according to the
principle of loan expense capitalization, all the other exchange balances shall be included into
the profits & losses at the current period. The foreign currency non-monetary items measured in
historical costs shall still be converted according to the spot rate at the time of the transaction.
Their account standard money amounts shall not be changed. The foreign currency non-monetary
items measured in fair values shall be converted according to the spot rate on the recognition
date of the fair values. The exchange balances incurred accordingly shall be recorded into the
profits & losses at the current period or the additional paid-in capital.
（9）Financial tools
1. Categories of financial Tools
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Semi-Annual Report 2011
The Company divides the financial assets into four categories: financial assets measured at fair
value and their variations are recognized as current gain/loss, including trade financial assets or
financial liabilities and recognized directly as financial assets measured at fair value and their
variations are recognized as current gain/loss; Investment hold till expiration; loans and account
receivable; saleable financial assets .The company divides the financial liabilities into two
categories: financial liabilities measured at fair value and their variations are recognized as
current gain/loss; other financial liabilities.
2. Recognition and measurement of financial tools
(1) Financial assets and liabilities measured at fair value and their variations are recognized as
current gain/loss
The fair value (after deducting of announced but not distributed cash dividend or due but not
obtained bond interests) is recognized as initial amount when obtained.
Interests or cash dividends during the period of holding are recognized as investment gains. The
fair value will be adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as
investment gains, and thus adjust the gain/loss of fair value.
(2) Investment hold till expiration
The fair value (after deducting of due but not obtained bond interests) plus the related trade
expenses is recognized as initial amount when obtained.
Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is
adopted when the difference between the actual rate and face rate is minor) during the period of
holding, and accounted as investment gains. Actual rate is recognized when obtained, and is not
changed in the predictable holding period or applicable shorter period.
When disposed, the difference between the obtained price and book value is accounted as
investment gains.
If the company sells or reclassifies large-amount due investments before the expired date (large
amount refers to comparing with the amount before the selling or reclassifying the investments),
the company will reclassify the rest of the investments as financial assets for sale, and in the
current accounting period or within two complete accounting years, no financial assets will be
classified as holding due assets, except for the following situations: the sale date or
reclassification date is close to the expired date of the investment (such as three months before
the expired), and the change of interest rate has no significant influence on the fair value of the
investment; after all the initial principal is mostly recovered according to periodic payments or
repay in advance regulated in the contract, the rest part will be sold or reclassified; the sale and
reclassification is caused by the independent events which are uncontrollable
43
Semi-Annual Report 2011
and unexpected and will not happen any more.
(3) Account receivable
The receivable debts of selling goods or providing services, and the credits of other company
hold by the company not including the debt which has price in active market, including accounts
receivable, notes receivable, prepaid accounts, other receivables, long-term receivables, etc. The
contract or agreement price charging from purchaser should be taken as the initial confirmation
amount; if it has the nature of financing, it should be confirmed according its current value.
When retrieved or disposed of, the difference between the actual received amount and the book
value is accounted as current gain/loss.
(4) Saleable financial assets
The fair value (after deducting of announced but not distributed cash dividend or due but not
obtained bond interests) plus the related trade expenses is recognized as initial amount when
obtained.
Interest or cash dividend occurred during the period of holding is recognized as investment gains.
Change of fair value is accounted as capital reserves (other capital reserves) at the end of term.
When disposed, the difference between the obtained price and book value is accounted as
investment gains. Meanwhile, the corresponding part of accumulated change of fair value
accounted as owners’ equity is transferred into investment gain/loss.
(5) Other financial liabilities
Other financial liabilities are recognized initially at the sum of fair value and related trade
expenses. Successive measurement will be on the basis of amortized costs.
3. Recognition and measurement basis of financial asset transposition
When financial asset transposition occurred, the recognition of this particular financial asset is
terminated if almost all risks and rewards attached to the asset have been transferred to the
acceptor. If retain all the risks and rewards of ownership of financial assets, the financial assets
can be confirmed.
When determine whether the transfer of financial assets meet the conditions of confirmation of
the above financial assets, the principle of substance being more important than form should be
adopted. The transfer of financial assets can be divided into overall transfer and part transfer of
financial assets. If the transfer of financial assets meet the conditions of terminating confirmation,
the following the difference of the two amounts will be included in the current profit and loss:
(1) Book value of the financial asset to be transposed;
(2) The sum of price received due to the transposition, and the accumulation of change in fair
value originally accounted as owners’ equity (when the asset to be transposed is saleable
44
Semi-Annual Report 2011
financial asset).
If part transfer of financial assets meet the conditions of terminating confirmation, the book
value of the transferred financial assts, the difference between the confirmed part and the
unconfirmed part (in this case, the service assets retained should be deemed as the part of
unconfirmed financial assets), should be amortized in accordance with their relative fair value,
and the difference between the following two amount should be included current profit and loss:
① Book value of the confirmed part;
②All fair values of financial assets and financial liabilities are recognized with reference to the
price in the active market.
If the transfer of financial assets does not meet the conditions of terminating confirmation, the
financial assets should be confirmed again, the prices received will recognized as financial
liabilities.
4.the conditions to stopping the financial liabilities
The obligation of financial liabilities are already cancelled which should be stopped confirming
the financial liability or the part of it. Our company could stop confirming the currently financial
liability and begin to confirm the newly financial liability if the loaner made an agreement that
they would assume the new way of financial liability which replace the current one, and make
sure the newly financial liability is totally different from the old one in contract with our
company.
Stop admitting the financial liability or a part of it, and at mean time we could admit the newly
financial liability which is in new insertions of contract as the newly financial liability if the
current financial liability has been revised.
Stop admitting the balance of value of financial liability and consideration (Including the roll-out
of non-cash assets or financial liabilities) which could be consider as current profits and losses.
Stop and continue admitting a part of value, and distribute the value of financial liability, if our
company repurchased the part of financial liability. And the balance of value of which distributed
to the part of stopping admitting and paid (Including the roll-out of non-cash assets or financial
liabilities) which could be consider as current profits and losses.
5.Recognition basis of financial assets and financial liabilities
All fair values of financial assets and financial liabilities are recognized with reference to the
price in the active market（Using valuation technique, etc）.
6. Impairment provision for financial assets
①Impairment provision for financial assets for sale:
If the fair value of financial assets for sale greatly drops at the end of the period, or after
considering all the relevant factors and expecting decrease trend is non-temporary, the
impairment should be confirmed, and the accumulative loss formed by the decrease of fair value
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of owner’s equity originally included should be transferred out altogether and confirmed as
impairment loss.
②Holding the impairment provision of expired investments:
The measurement of holding the impairment provision of expired investment will be according
to the method of the measurement of impairment provision for receivables.
（10）Accounts Receivable
1. Accounts receivable with material specific amount and specific provisioned bad bebt
preparation.
（1）Judgment criteria or amount standard of material specific amount or amount criterial：the
accounts receivable whose single amount is over RMB 1 million & accounts for over 10% of the
accounts receivable amount.
（2）Provision method with material specific amount and provision of specific bad debt
preparation：Conduct the devalue test separately. Set up the bad debt reserve according to the
shortfall of the present value of expected future cash flows against its carrying amount and
record it into the profits & losses at the current period.
2. The accounts receivable of bad debt provisions made by Group
（1）Recognition basis of credit risk feature portfolio：the accounts receivable whose single
amount is over RMB 1 million & accounts for over 10% of the accounts receivable amount. the
accounts receivable under 5 years of age which are not significant without any business
connections any more.
（2）Counting & drawing method according to credit risk feature portfolio：
①The adopting aging analysis method：
Resere proportion for Reserve Proportion for
accounts receivable (%) other receivables(%)
Within 1 year(Including 1 year) 0 0
1－2 years 10 10
2－3 years 30 30
3－4 years 50 50
4－5 years 90 90
Over 5 years 100 100
The counting & drawing of bad debt reserves shall be based on the ending balance of the
accounts receivable after the deduction of the incomings & outgoings between the subsidiaries
within the scope of consolidated report forms.
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②The accounts receivable of bad debt provisions withdrawn by adopting other methods：
Conduct the devalue test separately. Set up the bad debt reserve according to the shortfall of the
present value of expected future cash flows against its carrying amount and record it into the
profits & losses at the current period.
3. Recognition Standard and Counting & Drawing Method of Bad Debt Reserves for the
Accounts Receivable Whose Single Amount Is not Significant
（1）the accounts receivable under 5 years of age which are not significant without any business
connections any more.
Account receivable with non-material specific amount but specific bad debt preparation:
the accounts receivable under 5 years of age which are not significant without any business
connections any more.
（2）Counting & drawing method of bad debt reserves for the accounts receivable whose single
amount is significant: Conduct the devalue test separately. Set up the bad debt reserve according
to the shortfall of the present value of expected future cash flows against its carrying amount and
record it into the profits & losses at the current period.
（11）Investories
1.Investories class
The company’s stocks can be classified as: raw materials, inventory goods, low-value
consumables & other materials, etc.
2. Valuation method of inventory issued
The company calculates the prices of its inventories according to the weighted averages method
or the first-in first-out method.
3. Recognition Basis of Inventories’ Net Realizable Values and Counting &
Drawing Method of Obsolete Inventory Reserves
After taking stock at the end of the period, the company sets up or adjusts the obsolete inventory
reserves according to the lower of the two indexes – the inventory costs or the inventories’ net
realizable values. In normal production & management, the net realizable values of the
merchandise inventories including finished goods, inventory goods, etc. which are directly for
sale shall be recognized by deducting the estimated selling expenses & relevant taxes from the
estimated selling price of the inventories. In normal production & management, the net realizable
values of the material inventories which need to be processed shall be recognized by deducting
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the estimated processing costs, the estimated selling expenses & relevant taxes from the
estimated selling price of the finished goods which have been made of the materials. The net
realizable values of the inventories for carrying out sales contracts or service contracts shall be
calculated based on the contract prices. If the inventory number is greater than the ordering
amount of the sales contract, the net values of the extra inventories shall be calculated based on
the common selling prices.
4. Inventory System
Adopts the Perpetual Inventory System
5. Amortizing Method for Low-Value Consumables
The low-value consumables shall be based on the one-off amortization method.
（12） Long-term equity investment
1. Initial measurement
（1）Long-term equity investment formed by Consolidation
For Consolidation of enterprise under common control, merger cost is determined on equity
combination basis. For equity investment paid by the Company in terms of cash, non-monetary
asset, undertaking of debts, or issuing of equity securities, the initial cost will be the booking
value of the long-term investment provided by the enterprise to be merged at the day of
consolidation. The differences between the initial investment cost of long-term investment and
cash paid, the non-monetary asset transferred out or book value of debt undertaken and the total
face value of shares placed, is used to adjust the capital reserves. When the capital reserve is not
enough to cover the adjustment, the retained gains will be adjusted. All direct expenses attached
to the Consolidation are included in the gain/loss account of the current term.
Business combination not under the same control: The combination costs shall be the fair values,
on the acquisition date, of the assets paid, the liabilities incurred or assumed and the equity
securities issued by the acquirer in exchange for the control on the acquiree & all relevant direct
costs incurred for the business combination. For a business combination realized by two or more
transactions of exchange, the combination costs shall be the summation of the costs of all
separate transactions. Where any future event that is likely to affect the combination costs is
stipulated in the combination contract or agreement, if it is likely to occur and its effects on the
combination costs can be measured reliably, the amount shall also be recorded into the
combination costs.
(2) Long-term equity investment obtained by other ways
Long-term equity investment obtained by cash payment is recognized for initial investment cost
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according to the price practically paid.
Long-term equity investment obtained by placing of equity stocks is recognized for initial
investment cost at the fair value of the stock.
Long-term equity investment input by investors is recognized for initial investment cost
according to the investment contract or agreement (less the cash dividend or profit announced
but not distributed). However when the value in the contract or agreement is not fair value is not
adopted.
The non-monetary asset exchange for a commercial real income and assets or the fair value other
assets can be reliably measured, the initial investment cost should be determined according to
long-term equity investment exchanged through the non-monetary asset exchange, unless there is
evidence showing that for the fair value of assets is more reliable; the non-monetary asset
exchange which does not meet the above premises, the book value of the exchanged assets to and
the relevant fees and taxes to be paid should be the initial investment cost of the long-term equity
investment.
The initial investment cost of the long-term equity investments obtained through debt
restructuring should be determined in accordance with fair value.
2. Follow-up Measurements & Recognitions of Profits or Losses
（1）Follow-up measurement
Cost basis is adopted in accounting of long-term equity investment without joint control or major
influence, and with no quotation in an active market, thus the fair value is not able to be reliably
measured.
Equity basis will be adopted for the long-term equity investment with joint control or major
influence.
The long-term equity investment that has joint control or significant influences over the invested
entity shall be measured by employing the equity method. If the initial cost is more than the
investing enterprise' attributable share of the fair value of the invested entity's identifiable net
assets for the investment, the initial cost of the long-term equity investment may not be adjusted.
If the initial cost is less than the investing enterprise' attributable share of the fair value of the
invested entity's identifiable net assets for the investment, the difference shall be recorded into
the profits & losses at the current period.
The treatment for the other changes of owner’s equity besides net loss and profit of the unit being
invested: for the other changes of owners’ equity besides net profit and loss of the unit being
invested, when shareholding ratio remains unchanged, the part shared or undertaken according to
share ratio, the book value of long-term equity investment should be adjusted, and at the same
time, the capital surplus (other capital surplus).
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（2）Recognition of Profits or Losses
Employing the cost method, besides acquiring the actual payment for investing or the dividends /
profits which have already been declared but not distributed yet, the company shall recognize its
current investment income by enjoying the dividends / profits declared to be distributed by the
invested entity.
The investment income Recognition by cost method is only limited to distribution of
accumulated net profit after the unit being invested receives investment, the part of profit and
cash dividends more than the amount will be regarded as initial investment cost recovery.
The loss which should be confirmed to the unit being invested under equity method should be
treated in accordance with the following orders: First of all, deduct the book value of long-term
equity investment. Second, if the book value of long-term equity investment can not be deducted,
the long-term equity value of the net value of the unit being invested should be further confirmed
as investment loss and used to deduct the book value of long-term receivables. Finally, after the
above treatment, the additional liabilities to be undertaken according to investment contract or
agreement should be confirmed as expected liability according to the expected liability and be
concluded in the current investment loss.
If the unit being invested achieves profit in the following period, after deducting the unconfirmed
liabilities, it should be treated according to the adverse order as described above, the book value
of the confirmed expected liabilities should be deducted, the book value of the long-term equity
investment and long-term equity of net assets of the unit being invested should also be resumed,
and at the same time, the investment income should be confirmed.
（3）Disposal of a long-term equity investment
On disposal of a long term equity investment, the difference between the proceeds actually
received and the carrying amount is recognized in profit or loss for the current period. For a
long-term equity investment accounted for using the equity method, any changes in the owners’
equity of the investee other than net profits or losses included in the owners’ equity of the
investing enterprise, shall be transferred to profit or loss for the current period on a pro-rata basis
according to the proportion disposed of.
(3) Recognition Basis for the Joint Control & the Significant Influence over the Invested
Entity
The control over an economic activity in accordance with the contracts and agreements, which
does not exist unless the investing parties of the economic activity with one an assent on sharing
the control power over the relevant important financial & operating decisions, shall be
recognized as the joint control together with other parties over the invested entity. The power to
participate in making decisions on the financial & operating policies of a company, but not to
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control or to do joint control together with other parties over the formulation of these policies
shall be recognized as the significant influence of the investing party on the invested entity.
(4) Test Method for Impairment and Counting & Drawing Method for Impairment
Reserves
As to a long-term equity investment with no significant influence, if there is no offer in the active
market for it and its fair value cannot be reliably measured, its impairment loss shall be
recognized according to the difference between its carrying amount & the current value
recognized by discounting the future cash flow according to the current market return similar to
the financial asset.
Besides the business reputation formed by the business combination, where the measurement
results of the removable amounts show that the receivable amount of any other long-term equity
investment is lower than its carrying value, the difference shall be recognized as the impairment
loss.
No matter whether there is any sign of possible assets impairment, the business reputation
formed by the business combination shall be subject to impairment test every year.
Once any loss of the long-term equity investment impairment is recognized, it shall not be
switched back any more.
（13）Commissioned loan
Commissioned loan should be accounted according to actual commissioned loan amount.
Account receivable interest rate according to the interest rate stipulated in commissioned loan.
Make overall inspection on the principal of commissioned loan on the balance sheet date, if there
is evidence showing that the principal of commissioned loan is higher than the recoverable
amount, impairment provision should be accounted on the commissioned loan.
（14）Investment Real Estates
The term "investment real estates" refers to the real estates held for generating rent and / or
capital appreciation, including the right to use any land which has already been rented, the right
to use any land which is held and prepared for transfer after appreciation & the right to use any
building which has already been rented.
The company shall make a measurement to the investment real estate through the cost pattern.
The company shall adopt the same depreciation policy as its fixed assets for the investment real
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estates measured by the cost pattern – buildings for renting & the same amortization policy as its
intangible assets for the right to use any land for renting. Where any evidence shows that there is
possible impairment, the recoverable amount of the fixed assets shall be estimated. Where the
recoverable amount is lower than its carrying value, the corresponding impairment loss shall be
recognized. Once any loss of the investment real estate impairment is recognized, it shall not be
switched back any more.
（15）Fixed asset
1.Fixed assets standard
Fixed assets refer to physical assets owned for purpose of production, service providing, leasing
or management, and operation with service life of more than one year. Fixed assets are
recognized when all of the following conditions are satisfied:
(1) Financial benefits attached to the fixed asset is possibly inflowing to the Company;
(2) The cost of the fixed asset can be reliably measured.
2. Categories of fixed assets
Fixed assets are categorized as: Guangfo Expressway, Fokai Expressway, Jiujiang Bridge, house
and building, Macnineryand equipment, vehicles, electronic and other equipment.
Provision for depreciation of highways and bridges is made with work amount method.
Estimated net residual value rate is zero. Estimated useful life is determined according to the
period of operation right in respect of charge collection. The concrete calculation method is as
follows: The amount of provision for depreciation per standard vehicle traffic volume is to be
calculated based on the estimated total standard vehicle traffic volume within expected useful life
of highways and bridges and the original value or book value of highways and bridges. Then
provision for depreciation is made according to the actual standard vehicle traffic volume in each
fiscal period.
The Company regularly rechecks the estimated total standard vehicle traffic volume within the
remaining operation period of highways and bridges. When there is big difference between
actual standard vehicle traffic volume and estimated standard vehicle traffic volume, the
Company will re-estimate future total standard vehicle traffic volume and adjust the provision for
depreciation per standard vehicle traffic volume to ensure that the book value of relevant
highways and bridges will be completely amortized within useful life.
The company adopts the straight line method for the depreciation of fixed assets except
highways & bridges, and recognizes the depreciation rate according to the fixed asset group,
expected useful life & the expected net salvage value rate.
Depreciation ages and ratios of fixed assets:
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Type Service life Predicted retained Annual depreciation rate
value rate
Highway and Bridge
Including：Guangfo Expressway 28 years 0% Working flow basis
Fokai Expressway 30 years 0% Working flow basis
Jiujiang Bridge 19 years 0% Working flow basis
House Building 20-30 years 3%—10% 3.17%-4.75%
Machine Equipment 10 years 3%—10% 9%-9.6%
Transportation Equipment 5-8 years 3%—10% 11.88%-19%
Electric Equipment and other
5-15 years 3%—10% 6.33%-19.4%
equipment
3. Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed Asset
Impairment Reserves
The company shall, at the end of each period, make a judgment on whether there is any sign of
possible fixed assets impairment.
Where any evidence shows that there is possible fixed assets impairment, the recoverable amount
of the fixed assets shall be estimated. The recoverable amount shall be determined in light of the
higher one of the net amount of the fair value of the fixed assets minus the disposal expenses &
the current value of the expected future cash flow of the fixed assets.
Where a fixed asset's recoverable amount is lower than its carrying value, the carrying value of
the fixed asset shall be recorded down to the recoverable amount, and the reduced amount shall
be recognized as the loss of the fixed asset impairment and be recorded into the profits & losses
at the current period. Simultaneously, the fixed asset impairment reserve shall be made
accordingly.
After the loss of the fixed asset impairment has been recognized, the depreciation expense of the
impaired fixed asset shall be adjusted accordingly in the future period so as to amortize the
post-adjustment carrying value of the fixed asset systematically (deducting the expected net
salvage value) within the residual service life of the fixed asset.
Once any loss of the fixed asset impairment is recognized, it shall not be switched back in the
future accounting periods.
Where there is any evidence indicating a possible impairment of a fixed asset, the company shall,
on the basis of a single fixed asset, estimate the recoverable amount. Where it is difficult to do so,
it shall determine the recoverable amount of the group fixed assets on the basis of the fixed asset
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group to which the fixed asset belongs.
（16）Construction-in-process
1. Calculation of Construction-in-process
The constructions in process are classified & accounted according to the established projects.
2. Standard & Time Point for Carrying Constructions in Process Forward to Fixed Assets
All the expenditures that bring the construction in process to the expected condition for use shall
be the credit value of the fixed asset. If the fixed asset construction in process has already
reached the expected condition for use, but hasn’t been made the final account; it shall be carried
forward to a fixed asset according to its estimated value based on the budget, cost or actual cost
of the construction starting from the date when it reaches the expected condition for use, and the
fixed asset shall be depreciated according to the company’s depreciation policy for fixed assets.
After the final account has been made, the original provisional estimated value shall be adjusted
according to the actual cost, but the depreciation which has originally been counted & drawn
shall not be adjusted.
.3 Test Method for Construction-in-Process Impairment and Counting & Drawing Method
for Construction-in-Process Impairment Reserves
The company shall, at the end of each period, make a judgment on whether there is any sign of
possible constructions-in-process impairment.
Where any evidence shows that there is possible constructions-in-process impairment, the
recoverable amount of the constructions-in-process shall be estimated. The recoverable amount
shall be determined in light of the higher one of the net amount of the fair value of the
constructions-in-process minus the disposal expenses & the current value of the expected future
cash flow of the constructions-in-process.
Where a construction-in-process's recoverable amount is lower than its carrying value, the
carrying value of the construction-in-process shall be recorded down to the recoverable amount,
and the reduced amount shall be recognized as the loss of the construction-in-process impairment
and be recorded into the profits & losses at the current period. Simultaneously, the
construction-in-process impairment reserve shall be made accordingly.
Once any loss of the construction-in-process impairment is recognized, it shall not be switched
back in the future accounting periods.
Where there is any evidence indicating a possible impairment of a construction-in-process, the
company shall, on the basis of a single construction-in-process, estimate the recoverable amount.
Where it is difficult to do so, it shall determine the recoverable amount of the group
constructions-in-process on the basis of the construction-in-process group to which the
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construction-in-process belongs.
（17）Loan expenses
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production
of asset satisfying the conditions of capitalizing, are capitalized and accounted as cost of related
asset. Other borrowing expenses are recognized as expenses according to the occurred amount,
and accounted into gain/loss of current term.
The assets meeting capital conditions refer to the fixed assets, investment real estates and
inventories which are constructed or produced in a long time to reach the predicted use or sale
state.
When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place, asset expenditures include the assets used to
construct or produce the assets which meet the capitalization conditions, and expend by cash or
transferring non-cash assets or bearing interest debt;
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of
state have begun.
2. Duration of capitalization of Loan costs
The capitalization period refers to the period from starting capitalization of loan costs to the stop
of capitalization, the period of the break of capitalization of Loan costs is not included.
When the construction or production meets the intended use or sale of state of capitalization
conditions, the Loan costs should stop capitalization.
When the construction or production meets the conditions of capitalization and can be used
individually, the capitalization of the loan costs of the assets should be stopped.
Where each part of a asset under acquisition and construction or production is completed
separately and is ready for use or sale during the continuing construction of other parts, but it can
not be used or sold until the asset is entirely completed, the capitalization of the borrowing costs
shall be ceased when the asset is completed entirely.
.3 Capitalization Suspension Period
Where the acquisition and construction or production of a qualified asset is interrupted
abnormally and the interruption period lasts for more than 3 months, the capitalization of the
borrowing costs shall be suspended. If the interruption is a necessary step for making the
qualified asset under acquisition and construction or production ready for the intended use or sale,
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the capitalization of the borrowing costs shall continue. The borrowing costs incurred during
such period shall be recorded into the profits & losses at the current period, till the acquisition
and construction or production of the asset restarts.
4. Calculation of the amount of capitalization of Loan costs
Interest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the
asset which satisfies the capitalizing conditions reaches its useable or saleable status.
Interest amount of common Loan to be capitalized equals to accumulated asset expense less
weighted average of specialized loan part of asset expense multiplies capitalizing rate of
common Loan occupied. Capitalizing rate is determined according to weighted average interest
of common Loan.
If the Loan has discount or premium, the discount or premium amount should be determined
according to actual interests in each accounting period. The interest amount should be adjusted in
each period.
（18）Intangible assets
1. The valuation methods of intangible assets
(1)The initial measurement is conducted according to the actual cost when the
intangible assets are acquired
The cost of the purchased intangible assets includes its buying price,relevant tax and the othe
expenses that are directly attributed to this assets meeting its predetermined objective and other
expenses that occur.The buying price of intangible assets is over the deferred payment under
normal credit conditions,which has the nature of financing materially,the cost of intangible assets
is determined on the basis of the present value of its buying price.
We acquire the mortgaged intangible assets from debtors through debt restructuring and
determine the entry value on the basis of the fair value of the intangible assets,we have the
balance between the book value of debt restructuring and the fair value of intangible assets
used for mortagage charged to the current profit and loss.
The entry value of the non-monetary assets exchanged into by the non-monetary assets are
determined on the basis of the fair value of the assets exchanged out if the exchange of
non-monetary assets has commercial nature and the assets exchanged into or out can be reliably
measured,unless there is authentic evidence indicating that the fair value of assets exchanged into
are more reliable;if the non-monetary assets that cannot meet the above prerequisite use the book
value of the assets exchanged out and relevant taxes payable as the cost of the non-monetary
assets, the profit and loss is not confirmed.
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The entry value of the intangible assets acquired by the absorption merger under the control of
one company is determined by the book value of the merged party;the entry value of the
intangible assets acquired by the absorption merger that is not under the control of one company
is determined by the fair value.
The cost of the intangible assets developed internally includes the materials consumed in
developing the assets,cost of service,registration fees,othe patent used in developing,amortization
of concession and interest charges meeting the capitalization conditions and othe direct costs
that occur before the intangible assets meeting the predetermined objective.
（2）Subsequent measurement
The Company analyses and makes judgment of its serviceable life when acquiring the intangible
assets.
The intangible assets that have limited serviceable life are amortized by the straight-line method
during the period when the assets can bring about economic interests;The intangible assets are
deemed as uncertain serviceable life and are not amortized if it is impossible to expect the period
when the assets could bring about economic interests.
2. Provision for the depreciation of value of the intangible assets
The intangible assets that have certain serviceable life are conducted at the ending with the test
of depreciation of value if the assets indicate obviously that those are depreciating
For conducting a test of depreciation of value of the intangible assets,it needs to estimate the
recoverable amount of the assets.The recoverable amount is determined by the higher between
the net amount obtained through the fair value of intangible assets minus settlement chanrges and
the present value of the future cash flow expected by the intangible assets.
When the recoverable amount of intangible assets is below their book value,the book value of
intangible assets is written down to the recoverable amount and the amount written down is
confirmed as the loss of depreciation of value of intangible assets and is charged to the current
profit and loss,while the corresponding provision for the depreciation of value of intangible
assets is made.
The depletion of the depreciation of value of intangible assets or the amortization charge in the
future period will be adjusted accordingly after confirmation of the loss of the depreciation of
value of intangible assets so that it can systematically allocate the book value of intangible assets
adjusted in the residual serviceable life of intangible assets(deduction of anticipated net value).
Upon confirmation of the loss of the depreciation of value of intangible assets,the loss will not be
reversed in the subsequent accounting period any longer.
The Company estimates its recoverable amount on the basis of the single intangible assets if
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Semi-Annual Report 2011
there is indication that possible loss of depreciation of one item of intangible assets.The
Company uses intangible assets belonging to the capital group as a basis to confirm the
recoverable amount of intangible assets.
（19）Long-term amortizable expenses
Long-term prepaid expenses refer to that enterprises have already spent, and amortization
periods of all expenses are more than one year (excluding 1 year), they should be amortized in
the regulated years.
（20）Bond payable
1. Valuation of payable bonds
When the company is issuing bonds, the total price issued should be included in the "payable
bonds" subject.
2. Amortization method for bond premium or discount
The difference between bond issuance total amount and the total amount of bond face value
should be worked as bond premium or discount and be amortized within the bond period
according to actual interest rate and vertical line method, and be treated according to borrowing
costs described below.
（21）Income
The incomes of the company mainly include: selling products, providing labor services.
1. The income from goods sale should be confirmed when meeting the following conditions: The
company had transferred the ownership of the goods to the buyer, and the company did not retain
the continuing management right relating to ownership right, and did not control the goods sold;
the economic interests relating to transaction will go into the company; the company can reliably
measure the related revenue and costs.
2. Principles for the confirmation of incomes from providing service are as follows:
The service started and completed in the same accounting year should be confirmed upon the
completion of labor income. If the beginning and completion of the service belongs to different
accounting year, when the results of providing service transaction can be reliably estimated, on
the balance sheet date, the company should confirm the relevant service income according to the
completion percentage. When all the following conditions can be met, the results of the
transaction can reliably estimated:
(1). Total labor revenue and total labor costs can be reliably measured;
(2). The economic benefits relating to transactions will flow into the enterprise;
(3). The progress of completion of the service can be reliably identified.
（22）Government subsidies
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1.Type analyse
Government subsidies mean that the Company free of charge acquires the monetary assets and
the non-monetary assets.Government subsidies can be classified into capital-related government
subsidies and earnings-related one.
2.The methods of accounting treatment
The purchasing of the fixed assets,intangible assets and other long-term assets related to
government subsidies are confirmed as deferred revenue, the revenue is in installments charged
to the nonoperating earnings in accordance with the serviceable life of assets built or purchased.
The earning-related government subsidies that are used to compensate the relevant expenses or
loss are confirmed as deferred earnings when the subsidies are acquired, the deferred earnings
are charged to the current nonoperating earnings;When the subsidies are used to compensate the
relevant expenses or loss that occurred,the subsidies are directly charged to the current
nonoperating earnings.
(23)Deferred income tax assets and deferred income tax liabilities
1. References for confirmation of deferred income tax assets
The company is likely to determine the deferred income tax assets produced from deductible
temporary differences with the limit of offsetting the taxable income of temporary difference.
2.The confirmation basis of deferred income tax liabilities
The Company confirms the temporary differences of the taxable that is not paid in the current
and prior periods as the deferred income tax liabilities.However,the goodwill,the transactions
formed from non-business merger and those will affect either accounting profit or the temporary
differences of the taxable income when the transactions occur are not included in the deferred
income tax liabilities.
（24）Changing of main accounting policies, accounting estimations
1. Changing of main accounting policies
No changing of accounting estinations in report term.
2.Changing of Major accounting estimations
The company has formulated a policy to make an internal double-check to forecasting the traffic
volume of master standard for the toll road within the duration of operation each year. Every
three to five years or when there is significant difference between the actual standard of traffic
volume and forecasting standard of traffic volume, the company will appoint an independently
professional research institute to study the future traffic volume, and adjust the later year of unit
depreciation based on the master standard of traffic volume re-forecasted to ensure the relevant
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highway assets of depreciation can be withdrawn after the expiration of operation.
The company has formulated a policy to make an internal double-check to forecasting the traffic
volume of master standard for the toll road within the duration of operation each year. Every
three to five years or when there is significant difference between the actual standard of traffic
volume and forecasting standard of traffic volume, the company will appoint an independently
professional research institute to study the future traffic volume, and adjust the later year of unit
depreciation based on the master standard of traffic volume re-forecasted to ensure the relevant
highway assets of depreciation can be withdrawn after the expiration of operation.
On May 27, 2011, 2010 annual shareholders' general meeting of the Company adopted the
Proposal Concerning Change of Accounting Estimate to approve Guangfo Expressway Co., Ltd.
and Guangdong Fokai Expressway Co., Ltd. (including G325 Jiujiang Bridge), controlled
subsidiaries of the Company, to change accounting estimate. From January 1, 2011, newly
predicted total standard vehicle traffic volume (2010 version) is adopted as the basis for making
provision for the depreciation of the above-mentioned highways and bridges. Regarding this
matter, the Company made adjustment with future application method. After this change of
accounting estimate, the provision for depreciation of fixed assets for the period from January to
June of this year increased by RMB 47,427,493.84 and the net profit and net profit for the
owners of the parent company respectively decreased by RMB 35,951,850.95 and RMB
26,963,888.22.
(25)Correcting of accounting errors in the prior period
No changing of accounting errors in the prior period
III.Taxation
(I)Turnover tax ans surcharges
1.Turnover tax
Type of taxes Taxable Items Tax ratio
Business tax Toll income 3%，5%
Business tax Gains from rents 5%
Business tax Gains from service providing 5%
2.Urban Maintenance and construction Tax
Calculated and paid at 7% or 5% of the turnover tax. Foreign invested enterprise under the
Company is exempted from urban mairtenance and construction tax according to the regulations
from January-June 2010.
3．.Education surcharges
60
Semi-Annual Report 2011
Calculated and paid at 3% of the turnover tax.
4.Local Education surcharges
From January 1,2011，Calculated and paid at 2% of the turnover tax.
5.Defend expense
Calculated and paid at 0.1% or 0.12% of the turnover tax.
(II) Enterprise income tax
According to “Provisional Regulations of Enterprise Income Tax of PRC”, the Company pays
enterprise income tax at 25%.
According to “Provisional Regulations of Enterprise Income Tax of PRC”, Guangfo Expressway
Co., Ltd. pays enterprise income tax. As approved by Guangzhou Tax Bureau Foreign Division
with Shui-Wai-Fa[1993]1669, Guangfo Expressway Co., Ltd. pays enterprise income tax at 20%
in 2011.
According to “Provisional Regulations of Enterprise Income Tax of PRC”, Fokai Expressway
Co., Ltd. pays enterprise income tax at 25%.
According to “Provisional Regulations of Enterprise Income Tax of PRC”, Guangdong
Expressway Technology Investment Co., Ltd. pays enterprise income tax at 25%.
IV.Enterprise Consolidated and Consolidated Financial Statement
（I）Informationof subsidiaries
1.The subsidiary acquired through the establishment or investment and other means.
61
Semi-Annual Report 2011
Unit：RMB
The balance
between current
losses assumed
by minority
Balance of
shareholders’
other
Amount deducted from
The year end’s essenfaly Whether
Equity Voting Minority deduct from owners’ equity
Name of Business actual amount of constituting consolidate
Type Registered address Registered capital Operating scope holding power shareholders’minority belongs to
subsidiary nature capital net financial
percentage （%） equity shareholders’parent company
investment investment statement
equity and the minority
in
shareholders’
subsidiary
attributable
share of owners’
equity at the
opening balance
Investment in technical
industries and provision of
relevant consulting
Guangdong 4/F,Expressway services, research and
Expressway Holding Builidin No.85 Limitedc development of lighting
Technology subsidiaries Baiyun, liability 100,000,000.00 technology of Cicy and 95,920,000.00 100.00 100.00 Yes
Investment Yuexiu , Company Road, energy saving and
Co., Ltd. Guangzhou storage technology,
photovoltaic technology of
solar energy and
production and sales of
62
Semi-Annual Report 2011
relevant products, design,
production, release and
agency of all kinds of
domestic and foreign
advertisements,
construction and
maintenance management
of highway projects and
domestic trade. (excluding
gold, silver, motor vehicles and
dangerous chemicals)
2.The Subsidiary through business combination under the same control
The balance
between
current
Balance of
losses
other
assumed by
essenfaly Whether Amount deduct
Equity Voting Minority minority
Name of Business Registered The year end’s actual amount of constituting consolidate from minority
Type Registered address Operating scope holding power shareholders’ shareholders’
subsidiary nature capital capital investment net financial shareholders’
percentage （%） equity deducted
investment statement equity
from
in
owners’
subsidiary
equity
belongs to
parent
63
Semi-Annual Report 2011
company
and the
minority
shareholders’
attributable
share of
owners’
equity at the
opening
balance
West Shabei, Construction, tolling,
Guangzhou maintenance and
management of Guangfo
Guangfo Holding Limited Expressway, automobile
Expressway subsidiaries Liability 200,000,000.00 fueling, Form Hengsha 242,151,386.98 75.00 75.00 Yes 72,125,762.85 930,153.34
Co., Ltd. Company Guangzhou to Foshan
xiebian，A total length of 15.7
km, salvage, maintenance
and cleaning up.
Operation and management
of Fokai Expressway and its
Guangdong No.83 supporting facilities,
Holding Limited
Fokai Baiyun automobile salvage,
subsidiaries Liability 1,108,000,000.00 2,027,173,165.77 75.00 75.00 Yes 494,813,957.63
Expressway Road,Yuexiu, maintenance and cleaning,
Company
Co., Ltd. Guangzhou supply of automobile parts
and components,
maintenance and
64
Semi-Annual Report 2011
management of Jiujiang
Bridge of Guangzhan
Highway. Auto rescue and
repair (operated by
subsidiaries). Sales of
industrial capital goods
(excluding gold, silver, motor
vehicles and dangerous
chemicals), construction
materials, department goods,
needles, textiles, metals,
cross-powers.
3.The Subsidiaries through business combinations not under the same control
Unit：RMB
The balance
between current
The year
Balance of other Amount losses assumed
end’s Whether
essenfaly Equity Voting Minority deduct from by minority
Registered actual consolidate
Name of subsidiary Type Registered address Business nature Operating scope constituting net holding power shareholders’ minority shareholders’
capital amount of financial
investment in percentage （%） equity shareholders’ deducted from
capital statement
subsidiary equity owners’ equity
investment
belongs to parent
company and the
65
Semi-Annual Report 2011
minority
shareholders’
attributable share
of owners’ equity
at the opening
balance
2011, 2012 Research
Room, and
Owned No.201Huangpu development
subsidiary West Road, Limited of electronic
Guangzhou
of a Tianhe District, Liability 5,000,000.00 products and 1.00 3,000,000.00 60.00 60.00 No
Putian Zhongzhi
subsidiary Guangzhou Company technical
service.
Wholesale
trade.
66
Semi-Annual Report 2011
(II)There is no business entities sharing the controlling power through specific purpose subjects or by
entrusted with operation or by leasing in the current period
（III）There is no change of scope of consolidated in the current periodChange of scope of
consolidated
（IV）The subjects newly taken into the consolidation range in the current and the subjects not taken
into the consolidation range any longer in the current
1.There is no business entities that are subsidies newly taken into the consolidation range, that have
specific purpose subjects or that are entrusted with operation or by leasing forming the controlling
power in the current
2. The business entities that are not taken into the consolidation range any longer, that have specific
purpose subjects or that are entrusted with operation or by leasing forming the controlling power in
the current.
V. Notes to the major items of consolidated financial stateme
（I）Monetary Capital
Amount in year-end Amount in year-begin
Items
Foreign currency Exchange rate RMB Foreign currency Exchange rate RMB
Cash -- -- 68,635.98 -- -- 111,423.87
RMB -- -- 68,635.98 -- -- 111,423.87
Bank deposit -- -- 262,734,994.46 -- -- 258,311,984.67
RMB -- -- 262,332,789.87 -- -- 257,900,441.00
HKD 483,639.87 0.8316 402,204.59 483,639.87 0.8509 411,543.67
Other currency -- -- 335,058.02 -- -- 457,925.21
RMB -- -- 335,058.02 -- -- 457,925.21
Total -- -- 263,138,688.46 -- -- 258,881,333.75
Which restricted the monetary funds as follows：
Items Amount in year-end Amount in year-begin
Tolls clearing account funds 16,426,831.05 9,915,030.01
Total 16,426,831.05 9,915,030.01
（2）Account receivable
1.Type analyse.
67
Semi-Annual Report 2011
Amount in year-end Amount in year-begin
Book Balance Bad debt povision Book Balance Bad debt povision
Type Amount Propo Amount Proporti Amount Propo Amount Proporti
rtion( on(%) rtion( on(%)
%) %)
Individually significant
27,430,876.27 94.93 16,217,857.15 89.77
accounts receivable
Receivables
providedbad debt 1,463,950.19 5.07 13,952.43 0.95 1,847,702.58 10.23 22,051.46 1.19
provision in groups
Incl:account
reveivables on which
bad debt provisions are 1,463,950.19 5.07 13,952.43 0.95 1,847,702.58 10.23 22,051.46 1.19
provided on age basis
in the group
Other non-material
receivables
Total 28,894,826.46 100.00 13,952.43 0.05 18,065,559.73 100.00 22,051.46 0.12
2. Account reveivables on which bad debt provisions are provided on age basis in the group：
Balance in year-end Balance in year-begin
Age Balance of book Bad debt Balance of book Bad debt
Amount Propertion(%) provision Amount Propertion(%) provision
Within 1
1,429,445.34 97.64 - 1,763,197.73 95.43 -
year
1-2 years - - - 16,500.00 0.89 1,650.00
2-3 years 16,500.00 1.13 4,950.00 68,004.85 3.68 20,401.46
3-4years 18,004.85 1.23 9,002.43 - - -
4-5 years - - - - - -
Over 5
- - - - - -
years
Total 1,463,950.19 100.00 13,952.43 1,847,702.58 100.00 22,051.46
3. No individually insignificant receivables with bad debt provision recognized individually at the end
of period.
4. Reversal during the reporting period
Contents of Accumulated
Cause of previous
the account Reasons provision amount Reversed Amount
provision
receivables before reversal
Guangzhou Account collected Account age 15,000.00 15,000.00
68
Semi-Annual Report 2011
Shengyuan analysis method.
Advertisement
Co., Ltd.
Total -- -- 15,000.00 15,000.00
5. There is no recovery of accounts receivable through restructuring in the current.
6. There is no accounts receivable that were written off in the current.
7. .There was no account receivable due from shareholders with more than 5% (including 5%) of the
voting shres of the company.
8. The top 5 arrearage in accounts receivable
Proportion to
Name Relationship with the Company Amount Aging total accounts
receivalbe(%)
Guangdong Union Electric
No relationship 27,430,876.27 Within 1 year 94.93
toll Co., Ltd.
Guangzhou Zhongqiu
No relationship 757,213.11 Within 1 year 2.62
advertising Co., Ltd.
Guangdong Feida Communication
No relationship 408,977.60 Within 1 year 1.42
Engineering Co., Ltd.
Huizhou Donghong advertising
No relationship 170,500.00 Within 1 year 0.59
Co., Ltd.
Guangzhou Riyue Disseminator
No relationship 63,814.00 Within 1 year 0.22
Corporation
Total -- 28,831,380.98 -- 99.78
9. The situation on the accounts receivable from the affiliated parties
Proportion to
Name Relationship with the Company Amount Aging total accounts
receivalbe(%)
Guangdong Lulutong Co.,Ltd. Be controlled by the same parent company 18,004.85 3-4years 0.06
Total -- 18,004.85 -- 0.06
10. There is no accounts receivable that have been terminated to confirm in the current.
11. There is no accounts receivable as a object of securitization in the current.
（3）Prepayment
1.Age analysis
69
Semi-Annual Report 2011
Balance in year-end Balance in year-begin
Age
Amount Proportion Amount Proportion
Within 1 year 93,404,293.30 57.18 61,848,782.42 31.61
1－2 years 69,677,899.30 42.66 133,634,966.90 68.30
2－3 years 100,272.50 0.06 169,738.00 0.09
Over 3 years 169,738.00 0.10 - -
Total 163,352,203.10 100.00 195,653,487.32 100.00
2. The top five companies according to the Prepayment
Relationship with the Reasons for
Name Amount Time
Company pending accounts
Guangdong Changda Highway controlled by the same Within 2
90,976,155.60 Pending accounts
Engineering Co., Ltd. parent company years
controlled by the same
Within 2
Guangdong Guanyueqiao Co., Ltd. parent 40,544,095.00 Pending accounts
years
company
China Railway 12 Bureau Group 1-2
No relationship 6,984,768.00 Pending accounts
Co., Ltd Years
Within 1
Zhiguang Jietong Technology Co., Ltd. No relationship 6,905,051.00 Pending accounts
Year
Guangdong Xinguang International Within 1
No relationship 6,161,794.00 Pending accounts
Group Co., Ltd. year
Total -- 151,571,863.60 -- --
3.There was no Prepayment due from shareholders with nore than 5% (including 5%) of the voting
shares of the company.
4.Prepayment from related parties
Proportion
Name Relationship with the Company Amount Time
(%)
Guangdong Changda Highway controlled by the same Within 2
90,976,155.60 55.69
Engineering Co., Ltd. parent company Years
controlled by the same Within 2
Guangdong Guanyueqiao Co., Ltd. 40,544,095.00 24.82
parent company years
Guangdong Hualu Communication controlled by the same
200,000.00 Within 1 year 0.12
Technology Co., Ltd. parent company
Total -- 131,720,250.60 -- 80.63
Total 291,486,443.57 80.00
(4) Dividends receivable
70
Semi-Annual Report 2011
Reason
Whether the
Amount s for
relevant
at year Increase at Decrease at Amount at not
Items funds have
beginnin this period this period period end being
signs for
g recover
impairment
ed
1.The dividends
receivable with account - 349,479,673.89 185,600,689.22 163,878,984.67
age less than one year
The dividend of Jungzhu
Not
Expressway in 2010 and
- 206,443,449.58 72,000,000.00 134,443,449.58 paydivid
surplus dividend in last
ends
year
The surplus dividend of
Guangdong Guanghui Not
Expressway Co., Ltd in - 60,332,224.31 30,896,689.22 29,435,535.09 paydivid
2010 and dividend in ends
First quarter 2011.
The dividend of Shenzhen
- 60,000,000.00 60,000,000.00 -
Huiyan Expressway in 2010.
The dividend of China
Everbright Bank Co., - 22,704,000.00 22,704,000.00 -
Ltd. in 2010.
2. The dividends
receivable with account - - - -
age more than one year
Total - 349,479,673.89 185,600,689.22 163,878,984.67 -- --
(5) Other recievable
1.Type analyse:
Amount in year-end Amount in year-begin
Book Balance Bad debt povision Book Balance Bad debt povision
Type Amount Propo Amount Propo Amount Propor Amount Propor
rtion( rtion( tion(% tion(%
%) %) ) )
Individually
significant accounts 66,794,504.78 64.77 66,794,504.78 100.00 66,794,504.78 66.92 66,794,504.78 100.00
receivable
Group I:Receivables
providedbad debt 1,659,703.6
36,331,616.90 35.23 7.50 33,023,192.56 33.08 1,659,590.49 7.19
provision In the 8
group
71
Semi-Annual Report 2011
Amount in year-end Amount in year-begin
Book Balance Bad debt povision Book Balance Bad debt povision
Type Amount Propo Amount Propo Amount Propor Amount Propor
rtion( rtion( tion(% tion(%
%) %) ) )
Group I:Other
Receivables account
reveivables on which
22,120,614.63 21.45 1,659,703.68 7.50 23,085,567.70 23.13 1,659,590.49 7.19
bad debt provisions
are provided on
other basis
Group II ： Other
Receivables account
reveivables on which
14,211,002.27 13.78 - - 9,937,624.86 9.96 - -
bad debt provisions
are provided on
other basis
Other
non-material other - - - - - - - -
receivables
Total 103,126,121.68 100.00 68,454,208.46 66.38 99,817,697.34 100.00 68,454,095.27 68.58
2. There is no significant amount or the test of depreciation of value of bad debts provision of
accounts receivable at the ending.
Amount of bad Proportion
Other receivables Book balance Reasons
debts (%)
Kunlun Securities Co., Ltd. 50,973,424.87 50,973,424.87 100.00% Notes 1
Beijing Gelin Enze 12,220,079.91 12,220,079.91 100.00% Notes 2
Guangzhou Putian Zhongzhi 3,601,000.00 3,601,000.00 100.00% Notes 3
Total 66,794,504.78 66,794,504.78
Notes1: The parent company once paid RMB33.683,774.79 into KunLun Stock Co, Ltd, Guangdong
expressway technology investment Co, Ltd once paid RMB18.000,000.00 into KunLun Stock Co, Ltd.
QingHai Province XiNing City’s intermediate people's court made a adjudication under law declared
that KunLun Stock Co, Ltd went bankrupt and repaid debt in November 11, 2006. On March 2007,My
company and Guangdong Expressway Technology investment Co, Ltd had switched the money that
paid into KunLun Stock Co, Ltd to other account receivable, and follow the careful principle to
doubtful debts provision.The RMB 710,349.92 credit was recovered in 2008, and the provision for
bad debt is deducted.
2. GuangDong Expressway technology investment Co, Ltd should charge Beijing Green EnZhe
Organic fertilizer Co, Ltd for RMB 12,220,079.91. Eight millions of it was entrust loan, three millions
was temporary borrowing, the rest of it was advance money for another. Beijing Green EnZe Organic
72
Semi-Annual Report 2011
fertilizer Co, Ltd’s operating status was bad and had already ceased producing, Accordingly, the
controlling subsidiary of the company Guangdong Gaoshu Investment Co., Ltd. accounted full
provision for bad debt RMB 12,220,079.91 Provision .
3. The amount of other accounts receivable by Guangdong Express Technology Investment Co., Ltd.,
a controlled subsidiary of the Company, from Guangzhou Putian Zhongzhi Technology Industrial Co.,
Ltd. is RMB 3,601,000.00. RMB 3,301,000.00 is loan for temporary turnover and the balance of
RMB 300,000.00 is the advanced payment for bankruptcy liquidation. As Guangzhou Putian
Zhongzhi Technology Industrial Co., Ltd. entered bankruptcy liquidation procedure in June 2009,
intrabranch elimination was no longer carried out. Guangdong Express Technology Investment Co.,
Ltd.,full provision of RMB 3,601,000.00 for bad debts in respect of this sum of money.
3. Other Account reveivables on which bad debt provisions are provided on age basis in the group：、
Amount in year-end Amount in year-begin
Age Book Balance Book Balance
Bad debt povision Bad debt povision
Amount) Proportio(%) Amount) Proportio(%)
Within
1year 20,460,910.95 92.50 21,425,864.02 92.82
1-2
years
2-3
years
3-4
years
4-5years 1,131.88 0.00 1,018.69
Over
5years 1,659,703.68 7.50 1,659,703.68 1,658,571.80 7.18 1,658,571.80
Total 22,120,614.63 100.00 1,659,703.68 23,085,567.70 100.00 1,659,590.49
4. Other Account reveivables on which bad debt provisions are provided on Other basis in the group
Other account reveivalbes Book Balance Amount of bad debt
Foshan Land resources Bureau,Chancheng Branch 7,366,300.00
Guangdong Xingyu Law Office 2,302,042.27
Heshan Finance Bureau 1,835,391.00
Heshan Labor and social sevurity Bureau 1,163,844.00
Foshan Chancheng Labor and social sevurity Bureau 1,006,743.00
Foshan Chancheng Labor and social sevurity Bureau 449,682.00
Guangdong Gaoda Property Development Co., Ltd. 87,000.00
Total 14,211,002.27
Notes：The other receivalbes, Given its high recyclable, so no provision for bad debts.
73
Semi-Annual Report 2011
5.. No individually insignificant other receivables with bad debt provision recognized individually at
the end of period.
6. There is no provision for bad debts in full or the provision for bad debts is much high while the
debts have been fully recovered or reversed,or no recovery or reversal of a large proportion of
accounts receivable in the current.
7. There is no recovery of accounts receivable through restructuring in the current report period.
8. The cancellation after verification on other accounts receivable in the current
9. There was no other receivable due from shareholders with more than 5% (including 5%) of the
voting shares of the Company.
10.The top five companies in the amount of ther receivables
The proportion
Relationship of the total of
Nature or
Name with the Amount Aging other
content
Company receivables
(%)
The
subsidiary of
See
the Company Over 5
Kunlun Securities Co.,Ltd 50,973,424.87 49.43 “V(5)2,Note
holds its years
s1
5.74% stake
of Kunlun
See
Beijing Gelin Enze Joint venture 12,220,079.91 3-5 years 11.85 “V(5)2,Note
s2
Foshan Land resources No Guarantee
7,366,300.00 2-3 years 7.14
Bureau,Chancheng Branch relationship deposit
The
See
controlling
Guangzhou Putian Zhongzhi 3,601,000.00 2-5 years 3.49 “V(5)2,Note
grandson
s3
company
Cashier of
Within 1 spare
Li Jing subsidiary 2,365,000.00 2.29
year changes
company
Total 76,525,804.78 74.20
11. The accounts receivable from the Related parties
74
Semi-Annual Report 2011
The
proportion
Relationship with the of the total
Name Amount Time
Company of other
receivables
(%)
Beijing Gelin Enze Joint venture 12,220,079.91 3-5 years 11.85
The controlling subsidiary
Guangzhou Putian Zhongzhi 3,601,000.00 2-5 years 3.49
company
Guangdong Guanghui Expressway
Joint venture 500,000.00 Within 1year 0.48
Co., Ltd.
Within 1
Zhaoqing Yuezhao Highway Co., Ltd. Joint venture 489,616.22 0.47
year
controlled by the same
Guangdong Kaiyang Exspressway Within 1
parent 469,465.03 0.46
Co.,Ltd. year
company
Within 1
Guangdong Maozhan Expressway Co., Ltd. Joint venture 93,510.88 0.09
year
controlled by the same
Guangdong Gaoda Property
parent 91,500.00 1-3 years 0.09
Development Co., Ltd.
company
controlled by the same
Within 1
Guangdong Yunwu Expressway Co., Ltd. parent 57,998.49 0.06
year
company
controlled by the same
Yunfo Guangyun Expressway Co., Ltd. parent 37,902.69 Within 1 year 0.04
company
controlled by the same
Guangdong Highway Construction Co.,
parent 30,459.29 Within 1 year 0.03
Ltd.
company
controlled by the same
Guangdong Shanfei Expressway Co., Ltd. parent 24,486.00 Within 1 year 0.02
company
controlled by the same
Guangdong Yuzhan Expressway Co., Ltd. parent 17,449.47 Within 1 year 0.02
company
controlled by the same
Guangdong Zhanjiang Bay Bridge Co., Ltd. parent 13,404.86 Within 1 year 0.01
company
controlled by the same
Guangdong Gangshao Expressway Co.,
parent 3,762.70 Within 1 year 0.00
Ltd.
company
Guangdong Shenshan West Expressway controlled by the same
3,489.22 Within 1 year 0.00
Co., Ltd. parent
75
Semi-Annual Report 2011
The
proportion
Relationship with the of the total
Name Amount Time
Company of other
receivables
(%)
company
controlled by the same
Guangdong Xinyue Communication
parent 2,158.60 Within 1 year 0.00
Investment Co., Ltd.
company
controlled by the same
Guangdong Expressway Co., Ltd. parent 1,219.97 Within 1 year 0.00
company
controlled by the same
Guangdong Tongyi Expressway
parent 329.51 Within 1 year 0.00
Service Area Co., Ltd.
company
controlled by the same
Guangdong Zhanxu Expressway Co., Ltd. parent 29.60 Within 1 year 0.00
company
controlled by the same
Guangdong Zhaoyang Expressway Co.,
parent 1.83 Within 1 year 0.00
Ltd.
company
Total 17,657,864.27 17.12
8.There is no accounts receivable that have been terminated to confirm in the current.
9.There is no accounts receivable as a object of securitization in the current.
（6）Inventory
1.Type analyse
Balance in year-end Balance in year-begin
Items Book Value Bad debt Book Value
Book balance Bad debt povision Book balance
povision
Rew materials 218,997.00 218,997.00 279,948.92 279,948.92
Total 218,997.00 218,997.00 279,948.92 279,948.92
2. Inventory and inventory depreciation reserves
As of June 30, 2011, There is no the Inventory and inventory depreciation reserves
（7）Financial assets available for sale
1. Financial assets available for sale
76
Semi-Annual Report 2011
Period-beginning sound
Items Period-end sound value
value
Bonds available for sale
Equity instruments available for sale
Other 804,000,000.00 950,400,000.00
Total 804,000,000.00 950,400,000.00
2 Existing restricted circulation period of Financial assets available for sale
Deadline for
restricted Period-end sound Period-beginning
Type
circulation period value sound value
China Everbright Bank November 5, 2012 804,000,000.00 950,400,000.00
77
Semi-Annual Report 2011
（8） Information of Joint venture and Associated Enterprise
Voting Total current
Name Popoortion End total assets End total liabilities End total net assets Net profit
proportion(%) revenues
1. Joint venture
1. Guangdong Guanghui
30.00 30.00 6,113,263,799.74 3,406,889,564.63 2,706,374,235.11 714,350,315.27 239,580,904.84
Expressway
Zhaoqing Yuezhao Highway
25.00 25.00 2,268,650,910.95 1,411,121,083.53 857,529,827.42 181,071,183.05 11,609,699.36
Co., Ltd.
Beijing Gelin Enze 35.00 35.00 25,925,805.89 16,707,626.85 9,218,179.04
2. Affiliated company
.Shenzhen Huiyan Expressway 33.33 33.33 456,007,554.05 46,716,429.55 409,291,124.50 142,676,452.67 69,597,608.44
Guangdong Maozhan Expressway 20.00 20.00 2,743,162,748.98 2,046,050,276.04 697,112,472.94 211,640,640.10 30,304,251.47
.Jingzhu Exprwssway Guanzhu 20.00 20.00 4,182,398,005.66 3,248,663,702.82 933,734,302.84 577,411,586.06 327,653,787.11
Guangdong Jiangzhong Expressway 15.00 15.00 2,722,130,649.91 1,725,217,083.46 996,913,566.45 183,930,911.91 30,224,181.47
Ganzhou Kangda Expressway 30.00 30.00 1,831,472,630.35 1,600,752,956.27 230,719,674.08 68,055,435.20 -22,735,275.25
Ganzhou Gankang Expressway 30.00 30.00 2,805,099,150.30 2,126,752,776.80 678,346,373.50 38,490,359.67 -38,777,033.65
.Guangdong Guangle Expressway 30.00 30.00 6,828,186,692.76 4,396,652,620.31 2,431,534,072.45 -6,186,327.55
Notes：As of June 30, 2011，.Guangdong Guangle Expressway Co., Ltd. is still in construction , not yet operational.
78
Semi-Annual Report 2011
(8)Long- term s equity investment
1.Long- term s equity investment
Shareholdd Curren
Voting Current
Account Initial Balance in Increase/decr Balance in ing Instructi Impairmen t
Name percenta cash
method amount year-begin ease year-end percentage( on t proision provisi
ge (%) dividend
%) on
Equity 705,503,400. 800,370,223. 11,542,047.1 811,912,270. 60,332,224.
Guangdong Guanghui Expressway Co., Ltd. 30.00 30.00
method 00 40 3 53 31
Equity 204,575,000. 226,962,556. 229,197,442.
Zhaoqing Yuezhao Highway Co., Ltd. 2,234,885.38 25.00 25.00
method 00 86 24
Equity
Beijing Gelin Enze 6,614,483.90 35.00 35.00
method
Equity 45,420,000.0 188,751,168. -37,511,636.6 151,239,532. 60,000,000.
Shenzhen Huiyan Expressway 33.33 33.33
method 0 74 8 06 00
Equity 224,000,000. 133,355,177. 139,422,494.
Guangdong Maozhan Expressway 6,067,316.60 20.00 20.00
method 00 99 59
Equity 280,067,179. 477,798,649. -144,778,935. 333,019,714. 206,443,449
Jingzhu Exprwssway Guanzhu 20.00 20.00
method 42 39 01 38 .58
Guangdong Jiangzhong Expressway Equity 156,750,000. 145,003,407. 149,537,034.
4,533,627.21 15.00 15.00
Co., Ltd. method 00 76 97
Equity 216,251,100. 122,264,697. 114,656,133.
-7,608,563.47 30.00 30.00
Ganzhou Kangda Expressway method 00 46 99
Ganzhou Gankang Expressway Co., Equity 226,379,000. 215,137,022. -11,633,109.9 203,503,912.
30.00 30.00
Ltd. method 00 04 9 05
Equity 629,997,500. 339,997,500. 288,144,101. 628,141,601.
Guangdong Guangle Expressway 30.00 30.00
method 00 00 73 73
Cost 5,400,000.
Huaxia Securities Co., Ltd.(Notes 1) 5,400,000.00 5,400,000.00 5,400,000.00 0.27 0.27
method 00
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Semi-Annual Report 2011
Shareholdd Curren
Voting Current
Account Initial Balance in Increase/decr Balance in ing Instructi Impairmen t
Name percenta cash
method amount year-begin ease year-end percentage( on t proision provisi
ge (%) dividend
%) on
Huazheng Assets Management Co. Cost 1,393,200.
1,620,000.00 1,620,000.00 1,620,000.00 0.54 0.54
Ltd.(Notes 2) method 00
Cost
Guangzhou Putian Zhongzhi(Notes 3) 785,536.35 785,536.35 785,536.35 60.00 60.00 785,536.35
method
Cost 30,000,000.0 30,000,000.0 30,000,000.0 30,000,000
Kunlun Securities Co., Ltd.(Notes 4) 5.74 5.74
method 0 0 0 .00
2,733,363,19 2,687,445,93 110,989,732. 2,798,435,67 37,578,736 326,775,673
Total
9.67 9.99 90 2.89 .35 .89
Notes 1. The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidation procedure in December 2005. The Company made full
provision for impairment in respect of this long-term equity investment of RMB 5.4 million.
Notes2: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co., Ltd. As the June 30, 2005, the amount of net
assets of Huazheng Asset Management Co., Ltd. in book was RMB 279.132 million and the appraised value was RMB - 2299.5486 million ,On October 14,
2005, Jianyin CITIC Asset Management Co., Ltd. issued the Letter of Soliciting Opinions on Equity Assignment to the Company. Jianyin CITIC Asset
Management Co., Ltd. was willing to pay the price of not more than RMB 42 million to acquire 100% equity of Huazheng Asset Management Co., Ltd. and
solicited the Company's opinions. The Company replied on December 5, 2005, abandoning the preemptive right under the same conditions. The Company
made provision of RMB 1.3932 million for impairment in respect of this long-term equity investment of RMB 1.62 million.
Notes 3. Guangzhou Putian Zhongzhi Technology Industrial Co., Ltd. entered bankruptcy liquidation procedure in June 2009. On November 30, 2009,
Guangdong Province Guangzhou Municipal Intermediate People's Court adjudicated the termination of bankruptcy liquidation procedure of Guangzhou
putianzhongzhi Technology Co., Ltd. Till the report date, the commercial registration cancellation procedures of Guangzhou putianzhongzhi Technology Co.,
Ltd. is in processing.
Guangzhou Putian Zhongzhi Technology Industrial Co., Ltd. entered bankruptcy liquidation procedure in June 2009. Guangdong Express Technology
Investment Co., Ltd., a controlled subsidiary of the Company, made full provision for impairment in respect of long-term equity investment in Guangzhou
Putian Zhongzhi Technology Industrial Co., Ltd.
Notes 4. The owner's equity of Kunlun Securities Co., Ltd. was negative and it entered liquidation procedure in October 2005. Guangdong Express
80
Semi-Annual Report 2011
Technology Investment Co., Ltd., a controlled subsidiary of the Company, made full provision for impairment in respect of its long-term equity investment
of RMB 30 million in Kunlun Securities Co., Ltd.
81
Semi-Annual Report 2011
（10）Investment real estate
Decrease
Balance in Increase at Balance in
Items at this
year-begin this period year-end
period
1. original price 12,664,698.25 12,664,698.25
1.Hoses and building 12,664,698.25 12,664,698.25
II. Accumulated depriciation 6,659,446.77 232,106.70 6,891,553.47
1.Hoses and building 6,659,446.77 232,106.70 6,891,553.47
III. Net value 6,005,251.48 5,773,144.78
1.Hoses and building 6,005,251.48 5,773,144.78
IV. Impairment privision
1.Hoses and building
V.Total of book value 6,005,251.48 5,773,144.78
1.Hoses and building 6,005,251.48 5,773,144.78
The current depreciation and the amortized amount in the investment real estate is RMB
232,106.70.
（11）Fixed assets
1. Fixed assets
Balance in year- Increase at this Decrease at this Balance in
Items
begin period period year-end
1.Total of Original price of
5,698,800,159.31 717,695,743.65 186,365,715.44 6,230,130,187.52
fixed assets
Including：Guangfo Expressway 1,429,114,009.57 5,857,059.47 1,434,971,069.04
Fokai Expressway 3,581,332,266.77 635,067,650.91 183,146,393.00 4,033,253,524.68
Jiujiang Bridge 233,157,396.55 16,726,950.00 249,884,346.55
House and Building 186,302,047.23 53,249,361.22 2,918,967.04 236,632,441.41
Machine equipment 13,221,303.67 300,355.40 12,920,948.27
Transportation Equipment 44,478,527.50 2,918,206.25 47,396,733.75
Electricity equipment and other 211,194,608.02 3,876,515.80 215,071,123.82
Add provision
II. Total of Accumulated depriciation 1,916,029,000.24 180,064,366.99 61,596,710.67 2,034,496,656.56
Including：Guangfo Expressway 558,313,655.92 73,079,934.04 631,393,589.96
Fokai Expressway 1,023,170,067.34 82,050,672.03 59,969,535.25 1,045,251,204.12
Jiujiang Bridge 75,426,597.65 9,684,437.09 85,111,034.74
House and Building 76,405,477.01 4,770,882.03 1,338,834.24 79,837,524.80
Machine equipment 6,686,669.92 518,923.38 7,205,593.30
Transportation Equipment 31,574,286.60 1,572,137.15 288,341.18 32,858,082.57
Electricity equipment and other 144,452,245.80 8,387,381.27 152,839,627.07
III. Total net book value of
3,782,771,159.07 4,195,633,530.96
fixed assets
Including：Guangfo Expressway 870,800,353.65 803,577,479.08
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Semi-Annual Report 2011
Balance in year- Increase at this Decrease at this Balance in
Items
begin period period year-end
Fokai Expressway 2,558,162,199.43 2,988,002,320.56
Jiujiang Bridge 157,730,798.90 164,773,311.81
House and Building 109,896,570.22 156,794,916.61
Machine equipment 6,534,633.75 5,715,354.97
Transportation Equipment 12,904,240.90 14,538,651.18
Electricity equipment and other 66,742,362.22 62,231,496.75
IV. Total of Accumulated
depriciation
Including：Guangfo Expressway
Fokai Expressway
Jiujiang Bridge
House and Building
Machine equipment
Transportation Equipment
Electricity equipment and other
V. Total book value of fixedassets 3,782,771,159.07 4,195,633,530.96
including：Guangfo Expressway 870,800,353.65 803,577,479.08
Fokai Expressway 2,558,162,199.43 2,988,002,320.56
Jiujiang Bridge 157,730,798.90 164,773,311.81
House and Building 109,896,570.22 156,794,916.61
Machine equipment 6,534,633.75 5,715,354.97
Transportation Equipment 12,904,240.90 14,538,651.18
Electricity equipment and other 66,742,362.22 62,231,496.75
The current depreciation amount is RMB 180,064,366.99.
The original price of projects under construction transferred to fixed assets is
RMB713,209,762.60 .
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Semi-Annual Report 2011
（12） Construction on process
1. Construction on process
Balance in year-begin Balance in year-begin
Items Impairment
Book balance Impairment povision Book Value Book Balance Book Value
povision
The period between Xiebian to Sanbao
extension project of the Fokai 2,322,384,389.89 2,322,384,389.89 2,556,319,785.55 2,556,319,785.55
The comprehensive maintenance base project of the
Xiebian to Sanbo station in the Fokai Expressway 72,706,191.62 72,706,191.62
Improvement project of Additional toll on overloaded
vehicle 3,413,420.00 3,413,420.00
The Jiujiang Bridge specific construction project 16,639,683.00 16,639,683.00
Design and implementation of video monitoring and
pre-warning system against ship collision for Jiujiang
Bridge 1,000,000.00 1,000,000.00
Restoration project of G325 Jiujiang Bridge 538,032.57 538,032.57
Other 221,221.00 221,221.00 898,640.39 898,640.39
Total 2,400,263,255.08 2,400,263,255.08 2,573,858,108.94 2,573,858,108.94
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Semi-Annual Report 2011
2. The variation in constructing the engineering project and the progress of important work
Enginee
Including：Capitali
r ing
Capitalisatio Current sation
Budget input Progr
Balance in Increase at Transfer to Other n of interest amount of of Source of Balance in
Items (RMB’00 account ess of Remarks
year-begin this period fixed assets losses accumulated capitalizati interest funds year-end
00) s for work
balance on of ratio
budget
interest （%）
（%）
The period between
Xiebian to Sanbao Self fund，
400,200.00 2,556,319,785.55 454,029,695.47 687,965,091.13 75.78 76-78 174,683,945.90 46,034,557.81 6.12 2,322,384,389.89
extension project of the Loan
Fokai
The comprehensive
maintenance base project
of the Xiebian to Sanbo 72,706,191.62 Self fund，72,706,191.62
station in the Fokai
Expressway
Improvement project of
Additional toll on 3,413,420.00 Self fund，3,413,420.00
overloaded vehicle
The Jiujiang Bridge
specific 2,319.08 16,639,683.00 87,267.00 16,726,950.00 72.13 100.00 Self fund，
construction project
Design and
implementation of video 1,000,000.00 Self fund，1,000,000.00
monitoring and
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Semi-Annual Report 2011
pre-warning system
against ship collision for
Jiujiang Bridge
Restoration project of Self fund，
538,032.57 100.00 100.00 538,032.57
G325 Jiujiang Bridge loan
Other 898,640.39 12,053,638.87 8,517,721.47 4,213,336.79 Self fund，221,221.00
Total 2,573,858,108.94 543,828,245.53 713,209,762.60 4,213,336.79 174,683,945.90 46,034,557.81 2,400,263,255.08
As of June 30, 2011, There is no the provision for decline in value of the construction in progress.
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Semi-Annual Report 2011
（13）Intangible assets
Decrease
Balance in Increase at this Balance in
at this
year-begin period year-end
Items period
138,326,653. 138,326,653.
I.Total cost 73 73
68,402,029.2 68,402,029.2
Jiujiang Bridge management right
4 4
66,917,573.7 66,917,573.7
Jiujiang Land Use right
6 6
File Management software 200,000.00 200,000.00
Toll simulation training and
180,000.00 180,000.00
testingsystm
Highways vehicle wireless video
surveillance 69,000.00 69,000.00
system software
Office automation system software 728,692.73 728,692.73
Toll system upgrade software 317,700.00 317,700.00
Guangfo Expressway Network
Integrated management 200,000.00 200,000.00
system administration
Yayao Land use right 1,311,658.00 1,311,658.00
79,082,002.4 83,125,659.5
II.Total of accumulative amortized 4,043,657.10
8 8
39,601,188.0 41,521,244.1
Jiujiang Bridge management right 1,920,056.10
0 0
38,741,736.0 40,620,125.1
Jiujiang Land Use right 1,878,389.16
0 6
File Management software 83,333.25 19,999.98 103,333.23
Toll simulation training and
126,300.00 18,000.00 144,300.00
testingsystm
Highways vehicle wireless video
surveillance 17,250.00 6,900.00 24,150.00
system software
Office automation system software 124,724.40 72,869.28 197,593.68
Toll system upgrade software 68,835.00 31,770.00 100,605.00
Guangfo Expressway Network
Integrated management 3,333.33 20,000.00 23,333.33
system administration
Yayao Land use right 315,302.50 75,672.58 390,975.08
87
Semi-Annual Report 2011
Decrease
Balance in Increase at this Balance in
at this
year-begin period year-end
Items period
III.Total lbook value of intangible 59,244,651.2 55,200,994.1
assets 5 5
28,800,841.2 26,880,785.1
Jiujiang Bridge management right
4 4
28,175,837.7 26,297,448.6
Jiujiang Land Use right
6 0
File Management software 116,666.75 96,666.77
Toll simulation training and
53,700.00 35,700.00
testingsystm
Highways vehicle wireless video
51,750.00 44,850.00
surveillance system software
Office automation system software 603,968.33 531,099.05
Toll system upgrade software 248,865.00 217,095.00
Guangfo Expressway Network
Integrated management 196,666.67 176,666.67
system administration
Yayao Land use right 996,355.50 920,682.92
IV. Total limpairment provision
Jiujiang Bridge management right
Jiujiang Land Use right
File Management software
Toll simulation training and
testingsystm
Highways vehicle wireless video
surveillance
system software
Office automation system software
Toll system upgrade software
Guangfo Expressway Network
Integrated management
system administration
Yayao Land use right
V. Book value Total of intangible 59,244,651.2 55,200,994.1
assets 5 5
28,800,841.2 26,880,785.1
Jiujiang Bridge management right
4 4
Jiujiang Land Use right 28,175,837.7 26,297,448.6
88
Semi-Annual Report 2011
Decrease
Balance in Increase at this Balance in
at this
year-begin period year-end
Items period
6 0
File Management software 116,666.75 96,666.77
Toll simulation training and
53,700.00 35,700.00
testingsystm
Highways vehicle wireless video
surveillance 51,750.00 44,850.00
system software
Office automation system software 603,968.33 531,099.05
Toll system upgrade software 248,865.00 217,095.00
Guangfo Expressway Network
Integrated management 196,666.67 176,666.67
system administration
Yayao Land use right 996,355.50 920,682.92
Current amortization of RMB 4,043,657.10.
（14）long term amortize expenses
Amortize
Accumulat Surplus
Original Balance in Increase in d Balance in
Items ive Amortize
amount year-begin this period expenses year-end
amortized term
Property
181,567.95 95,827.54 30,261.30 116,001.71 65,566.24 13 months
insurance
Renovation
fee for the
Non-started
office
191,564.80 191,564.80 191,564.80 amortize
building of
expenses
litong
squre
Total 373,132.75 95,827.54 191,564.80 30,261.30 116,001.71 257,131.04
（15）Deferred income tax assets and deferred income tax liability
Confirmed the deferred income tax assets and deferred income tax liability
Items Balance in year-end Balance in year-begin
Deferred income tax assets
Timing difference between accounting and
139,036,901.40 125,310,513.48
tax
Total 139,036,901.40 125,310,513.48
2. Unconfirmed deferred income tax assets
Items Balance in year-end Balance in year-begin
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Semi-Annual Report 2011
Items Balance in year-end Balance in year-begin
Deferred income tax assets
Impairment of assets prepares to
26,511,724.31 26,513,720.77
deduct timing differences
Total 26,511,724.31 26,513,720.77
Notes： It has uncertainty to gain the taxable income in future; therefore these
deductible temporary differences have not been confirmed as the deferred tax assets.
3. The amount of temporary differences corresponding to asset projects which make temporary
differences：
Items Balance in year-end
The taxability differences
Timing difference between accumulated depreciation 556,147,605.61
Total 556,147,605.61
90
Semi-Annual Report 2011
（16）Provision for depreciation of assets
Provision for Increase in this period Decreased amount in current period
Items depreciation of Switch Balance in year-end
Provision Other Switch back Other 少
assets cancellation
I.Provision for bad debts 68,476,146.73 7,014.16 15,000.00 68,468,160.89
II.Provision for falling price of
inventory
III.Provision for devaluation of
financial asset available for sales
IV.Provision for devaluation of
held-to maturity investment
V.Provision for devaluation of
37,578,736.35 37,578,736.35
long-term equity investment
VI.Provision for devaluation of
investing property
VII.Provision for devaluation of
fixed assets
VIII.Provision for devaluation of
engineering materials
IX.Provision for devaluation of
construction in progress
X.Provision for devaluation
Of productive biological asset
Including ： Provision for
devaluation of mature productive
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Semi-Annual Report 2011
biological asset
XI. Provision for devaluation of oil
asset
XII. Provision for devaluation of
intangible asset
XIII. Provision for devaluation of
goodwill
XIV.Other
Total 106,054,883.08 7,014.16 15,000.00 106,046,897.24
92
Semi-Annual Report 2011
（17）Short –term loan
1. Short –term loan
Items Balance in year-end Balance in year-begin
Pledge loan
Mortgage loan
Guarantee loan
Credit loan 936,000,000.00 500,000,000.00
Total 936,000,000.00 500,000,000.00
2. The company had no unpaid due short-term loan
（18）Account payable
1.Agie analyse
Items Balance in year-end Balance in year-begin
Within 1 year 44,480,851.36 73,287,003.82
1－2 years 36,507,904.58 34,208,006.87
2－3 years 3,808,665.85
Over 3 years 13,728,261.18 13,728,261.18
Total 98,525,682.97 121,223,271.87
There was account payable due from shareholders with more than 5% (including 5%) of the
voting shres of the company：
Balance in Balance in
Name
year-end year-begin
Guangdong Changda Highway
16,508,982.50 16,130,760.92
Engineering Co., Ltd.
Guangdong Expressway Co., Ltd. 13,728,261.18 13,855,418.78
Guangdong Communication Development
7,203,453.43 8,623,866.82
Company
Xinyue Communication Investemnt Co., Ltd. 3,737,237.49 4,096,611.29
Guangdong Guanyue Luqiao Co., Ltd. 2,764,367.00 14,387,350.00
Guangdong Guanghui Expressway Co.,Ltd. 2,750,000.00 1,787,500.00
Guangdong Hualu Communication Technology Co.,
730,109.00 763,409.00
Ltd.
Guangdong East Thinking Management Technology
207,804.00 207,804.00
Development Co., Ltd.
Guangzhou Putian Zhongzhi Technology Investry Co.,
99,447.00 99,447.00
Ltd.
Guangdong Shipping planning and design institute 3,120,686.90
Guangdong Xitai Expressway 146,527.06
Guangdong Yuzhen 93,083.24
Guangdong West Coast Expressway Trading Co., Ltd. 74,631.77
Total 47,729,661.60 63,387,096.78
93
Semi-Annual Report 2011
3．High balance account payable over 1 year has listed below：
Debtor Amount Not return cause Remark
Foshan Nanhai Village Office, Expansion project on
16,536,796.4
Nanhai Not settlement schedule paragraph provisional
3
Land Bureau estimate
Guangdong Changda Highway
16,508,982.5 Expansion project on schedule
Engineering Not settlement
0 paragraph provisional estimate
Co., Ltd.
13,728,261.1 Expansion project on schedule
Guangdong Expressway Co., Ltd. Not settlement
8 paragraph provisional estimate
Beijing Gongke Feida
Expansion project on schedule
Communication 4,164,229.00 Not settlement
paragraph provisional estimate
Development Co., Ltd.
Guangdong Communication
Expansion project on schedule
Development 7,203,453.43 Not settlement
paragraph provisional estimate
Company
Xinyue Communication Investemnt Expansion project on schedule
3,737,237.49 Not settlement
Co., Ltd. paragraph provisional estimate
China Railway 23 Bureau Group Co., Expansion project on schedule
2,061,500.00 Not settlement
Ltd. paragraph provisional estimate
China Railway 12 Bureau Group Co., Expansion project on schedule
1,984,500.00 Not settlement
Ltd. paragraph provisional estimate
65,924,960.0
Total
3
（19）Advance account
1.Age analyse
Items Balance in year-end Balance in year-begin
Winthin 1 year 7,104.00 5,445,178.76
1-2 years 5,860,896.34 996,067.12
2-3 years
Over 3 years
Total 5,868,000.34 6,441,245.88
2. There was Advance account due from shareholders with nore than 5% (including 5%) of the
voting shares of the company.
Name Balance in year-end Balance in year-begin
Guangdong Expressway Co., Ltd. 694,228.60 996,067.12
Total 694,228.60 996,067.12
（20）Payable Employee wage
1. Payable Employee wage
Balance in Increase in Payable in this period Balance in
Items
year-begin this period year-end
1.Wage,bonuds,subsidy 609,849.23 43,010,283.83 43,010,283.83 609,849.23
2.Employee welfare 2,955,797.00 2,955,797.00
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Semi-Annual Report 2011
3.Security insurance 27,118.50 9,185,073.74 8,034,973.46 1,177,218.78
Of which：Medical insurance 2,199,344.78 2,199,344.78
Basic old-age insurance 4,366,583.05 4,366,583.05
Annuity Payment 1,272,143.91 122,843.91 1,149,300.00
Unemployment insurance 523,128.44 522,842.44 286.00
Work injury insurance 233,989.28 233,475.00 514.28
Maternity insurance 27,118.50 116,287.02 116,287.02 27,118.50
Supplement Medical insurance 453,913.26 453,913.26
Other social insurance 19,684.00 19,684.00
IV. Housing fund 22,246.00 5,659,426.20 5,651,056.20 30,616.00
V. Termination Welfare 7,931.79 7,931.79
VI.Other 290,560.19 5,603,091.71 5,100,639.63 793,012.27
Including：Labour union outlay and Employee
276,221.21 1,735,458.05 1,218,666.99 793,012.27
Educatation outlay
Non-Money Welfare 2,556,762.16 2,556,762.16
Other 14,338.98 1,310,871.50 1,325,210.48
Total 949,773.92 66,421,604.27 64,760,681.91 2,610,696.28
Notes：The amount of the staff remuneration payable which belongs to default is RMB0.00.
（21）Payable tax
Items Balance in year-end Balance in year-begin
VAT 34.95
Bunsiness tax 4,815,898.83 2,686,929.09
Income tax 12,474,503.11 -6,281,178.61
City construction tax 272,888.65 125,448.26
Property tax 338,654.03 235,692.60
Land use tax 443,215.80 1,105,444.00
Individual income tax 122,365.92 2,970,668.57
Education subjion 140,223.81 76,643.60
Defend expense 162,825.56 71,544.34
Stamp tax 711,322.45
Locality Education subjion 77,402.76
Cultural construction costs 10,506.39
Total 18,858,519.81 1,702,514.30
（22）Interest payable
Items Balance in year-end Balance in year-begin
Pay the interest for long-term loans by installments. 6,214,292.67 5,648,877.66
Interet of company bonds 31,733,333.33 11,333,333.33
Payable interest for short-term borrowings 3,687,379.98 589,180.00
Total 41,635,005.98 17,571,390.99
（23）Dividend payable
Amount Balance in year-end Balance in year-begin Reason of
95
Semi-Annual Report 2011
overdue for
over 1 year
Zhujiang Basic Construction Investment
16,305,192.12 6,554,162.13
Co., Ltd.
Incl:did not
receive
dividends of
Dividends for shareholders of
122,342.26
A-share and B-share of Guangdong 137,834,117.06 12,443,094.27
yuan of Legal
Expressway
shareholders
overdue for
over 1 year
Total 154,139,309.18 18,997,256.40
（24）Other payable
1.Age analyse
Items Balance in year-end Balance in year-begin
Within 1 year 159,349,198.09 151,278,057.13
1-2 years 80,854,857.22 81,890,086.77
2-3 years 10,821,114.31 1,012,270.06
Over 3 years 4,552,156.42 3,601,166.90
Total 255,577,326.04 237,781,580.86
There were other receivable from the main shareholders of the Company holding nore than 5%
(including 5%) of the total shares of the Company.
Items Balance in year-end Balance in year-begin
Guangdong Changda Highway Engineering
64,444,933.68 67,265,709.58
Co., Ltd.
Guangdong Expressway Co., Ltd. 54,294,264.94 41,859,802.55
Guangdong Guanyue Luqiao Co., Ltd. 20,507,827.88 20,703,516.68
Guangdong Communication Development
2,108,888.90 3,548,934.87
Company
Xinyue Communication Investment Co., Ltd. 1,131,115.35 1,070,615.35
Guanggong Shipping planning and design Instifute 819,552.00 819,552.00
Guangdong Hualu communication Technology
272,754.50 272,754.50
Co., Ltd.
Guangghou Putian Zhongzhi 170,923.84 170,923.84
Guangdong Shenshan West Expressway 76,161.52
Guangdong Yuzhan Expressway Co., Ltd. 67,185.13
Guangdong West Coast Expressway Trading
53,466.67 9,006.18
Co., Ltd.
Guangzhou Xinrun Computer Technology
27,500.00 27,500.00
Co., Ltd.
Guangdong Xinlu Adverting Co., Ltd. 30,000.00 30,000.00
Guangzhou Xinyue Asphalt Co., Ltd. 3,100.00 3,100.00
96
Semi-Annual Report 2011
Items Balance in year-end Balance in year-begin
Guangdong Zhan Xu Expressway Co., Ltd. 203.25
Guangdong Zhaoyang Expressway Co., Ltd. 3.29
Guangdong Tongyi Expressway Services Area
160,000.00
Co., Ltd
Total 144,007,880.95 135,941,415.55
High balance Other payable over 1 year has listed below
Name Amount Not Refund cause
Project Quality
Guangdong Changda Engineering guarantees/
64,444,933.68
Co., Ltd. Bid Gruarantees/
Performance Gruarantee
Guangdong Expressway Co., Ltd. 54,294,264.94 Expansion management fees
Project Quality
Guangdong Guanyue Luqiao guarantees/
20,308,411.68
Co., Ltd. Bid Gruarantees/
Performance Gruarantee
Project Quality
Guangdong Jingtong Highway
guarantees/Bid
Engineering Construction Group 15,610,071.00
Gruarantees/Performanc
Co., Ltd.
e Gruarantee
Project Quality
guarantees/
Zhongtie No.12 Bureau Group Co.,
14,243,663.00 Bid
Ltd.
Gruarantees/Performanc
e Gruarantee
Project Quality
Jilin Great wall Highway guaranteesBid
8,253,707.00
Bridge construction Co., Ltd. Gruarantees/
Performance Gruarantee
Project Quality
guarantees/
Zhongtie No.23 Bureau Group Co.,
7,127,614.50 Bid
Ltd.
Gruarantees/Performanc
e Gruarantee
Project Quality
guarantees/
Guangdong Nengda High Maintenance
4,831,941.07 Bid
Co., Ltd.
Gruarantees/Performanc
e Gruarantee
Total 189,114,606.87
97
Semi-Annual Report 2011
4.Large amount of other payables
Name Amount Content Remark
Guangdong Changda Engineering Project Quality guarantees/
64,444,933.68
Co., Ltd. Bid Gruarantees/Performance Gruarantee
Guangdong Expressway Co., Ltd. 54,294,264.94 Expansion management fees
Guangdong Guanyue Luqiao Project Quality guarantees/
20,308,411.68
Co., Ltd. Bid Gruarantees/Performance Gruarantee
Guangdong Jingtong Highway
Project Quality guarantees/
Engineering Construction Group 15,610,071.00
Bid Gruarantees/Performance Gruarantee
Co., Ltd.
Project Quality guarantees/
Zhongtie No.12 Bureau Group Co., Ltd. 14,243,663.00
Bid Gruarantees/Performance Gruarantee
Jilin Great wall Highway Project Quality guarantees/
8,253,707.00
Bridge construction Co., Ltd. Bid Gruarantees/Performance Gruarantee
Project Quality guarantees/
Zhongtie No.23 Bureau Group Co., Ltd. 7,127,614.50
Bid Gruarantees/Performance Gruarantee
Guangdong Nengda High Maintenance Project Quality guarantees/
4,831,941.07
Co., Ltd. Bid Gruarantees/Performance Gruarantee
Total 189,114,606.87
（25） Non-current liability due in 1 year
1.Type
Items Balance in year-end Balance in year-begin
Long-term loan 237,700,000.00 327,000,000.00
Bond payable
Long-term payable
Total 237,700,000.00 327,000,000.00
2. Long-term loan due in 1 year
Items Balance in year-end Balance in year-begin
Pledoe Loan
Mortgage loan
Guarantee loan
Credit loan 237,700,000.00 327,000,000.00
Total 237,700,000.00 327,000,000.00
The long-term loans due within one year and belong to overdue loans gain the
extension amount is RMB 0.00.
98
Semi-Annual Report 2011
2.Long-term loans due in 1 year top 5 in amount
Date of Balance in year-end Balance in year-begin
commencem Loan termination
Unit Currency Interest rate Foreign
ent date Foreign currency RMB RMB
currency
of loan
Agricultural Bank of China, No.1
2009-6-23 2012-5-30 RMB 5.760 40,000,000.00
Road, Zhongshan Branch
SPD Bank, Jiefang Road Branch 2009-4-28 2012-4-27 RMB 5.490 11,700,000.00
Industrial Bank Co., Ltd.Guangzhou 100,000,
2004-12-15 2011-11-27 RMB 5.526 100,000,000.00
Tianhe North Branch 000.00
70,000,0
SPD Bank, Jiefang Road Branch 2008-12-26 2011-12-25 RMB 5.490 70,000,000.00
00.00
SPD Bank, Jiefang Road Branch 2009-3-24 2012-3-23 RMB 5.490 9,000,000.00
SPD Bank, Jiefang Road Branch 2009-1-20 2012-1-19 RMB 5.490 4,000,000.00
SPD Bank, Jiefang Road Branch 2009-3-5 2012-3-4 RMB 5.490 3,000,000.00
China Merchants Bank .Baiyun Road 60,000,0
2008-1-10 2011-1-9 RMB 4.860
Branch 00.00
China Merchants Bank .Guangzhou 50,000,0
2006-5-11 2011-5-11 RMB 5.184
World trade building Branch 00.00
47,000,0
ICBC.Guangzhou Fangchun Branch 2008-6-26 2011-6-15 RMB 4.860
00.00
327,000,
Total 237,700,000.00
000.00
（26）Long –term loan
99
Semi-Annual Report 2011
1.Type analyse
Items Balance in year-end Balance in year-begin
Pledoe Loan
Mortgage loan
Guarantee loan
Credit loan 3,468,264,803.54 3,575,964,803.54
Total 3,468,264,803.54 3,575,964,803.54
2．The top five of long-term loans
Date of Balance in year-end Balance in year-begin
commencem Loan termination Interest
Unit Currency Foreign Foreign
ent date rate RMB RMB
currency currency
of loan
Constrution Bank ,Guangzhou
2003-12-29 2013-9-28 RMB 6.120 578,324,803.54 578,324,803.54
Liwan Branch
China merchants Bank.Guangzhou
2008 2023 RMB 6.120 300,000,000.00 300,000,000.00
World Trade Building Branch
Communications Bank ,Foshan
2008 2015 RMB 6.120 300,000,000.00 300,000,000.00
Branch
ICBC Guangzhou Second Branch 2009-12-16 2023-10-31 RMB 6.120 300,000,000.00 300,000,000.00
Constrution Bank ,Guangzhou
2010-2-5 2020-1-31 RMB 6.120 254,210,000.00 254,210,000.00
Liwan Branch
Total 1,732,534,803.54 1,732,534,803.54
（27）Bonds payable
Par Date of Interest payable in Interest payable in Interest paid in this Interest payable in Balance in
Name Bonds term Issued amount
Value Issued year-beginning this period period year-end year-end
100
Semi-Annual Report 2011
09
Guangdong
100.00 2009-9-21 5 years 800,000,000.00 11,333,333.33 20,400,000.00 31,733,333.33 792,642,890.12
Expressway
debt
Total 800,000,000.00 11,333,333.33 20,400,000.00 31,733,333.33 792,642,890.12
（28）Long-term payable
Items Balance in year-end Balance in year-begin
Non-operating assets of payable 2,022,210.11 2,022,210.11
Total 2,022,210.11 2,022,210.11
（29）Capital stocks
Balance in year-begin Changed（+，-） Balance in year-end
Items Share allotment Bonus shares Capitalization of common Proportio
Amount Proportion ％ Other Subtotal Amount
eserve fund n％
1.Shares with conditional subscription
1.State-owned shares 409,910,135 32.61 10,144 10,144 409,920,279 32.61
2.State –owned legal person shares 22,301,977 1.77 22,301,977 1.77
3.Other domestic shares 8,364,452 0.67 -10,144 -10,144 8,354,308 0.66
Including： 7,835,481 0.62 -85,056 -85,056 7,750,425 0.62
Domestic non-state ovened legal person shares 528,971 0.04 74,912 74,912 603,883 0.05
Domestic natural person shares
Executives shares
(4). Foreign shares
Including： 198,857 0.02 -2,819 -2,819 196,038 0.02
Foreign legal person shares
101
Semi-Annual Report 2011
Balance in year-begin Changed（+，-） Balance in year-end
Items Share allotment Bonus shares Capitalization of common Proportio
Amount Proportion ％ Other Subtotal Amount
eserve fund n％
Domestic natural person shares
Total Shares with conditional subscription 440,775,421 35.06 -2,819 -2,819 440,772,602 35.06
2.Shares with uncounditional
subscription
(1). Common shares in RMB 467,592,327 37.20 2,819 2,819 467,595,146 37.20
(2).foreign shares in domestic market 348,750,000 27.74 348,750,000 27.74
(3).Foreign shares in overseas market
(4)other
Total Shares with uncounditional
816,342,327 64.94 2,819 2,819 816,345,146 64.94
subscription
3．.Total of capital shares 1,257,117,748 100.00 1,257,117,748 100.00
1. In the report period, 23 shareholders repaid 10,144 shares to Guangdong Communication Group Co., Ltd. as consideration. domestic natural person shares were
converted into state shares, were still the shares with limited sale conditions.
2.In the report period, 85,056 domestic natural person shares subject to sale restriction were converted into domestic natural person shares, which were still subject
to sale restriction.
3．At the end of previous year, the shares held by the senior executives of the Company decreased. In the report period, 2819 shares held by senior executives
changed from "restricted shares" into "unrestricted shares".
102
Semi-Annual Report 2011
（29）Capital reserves
Balance in Increase in Decrease in this Balance in
Items
year-begin this period period year-end
Share capital premium 1,534,759,97
1,534,759,970.60
0.60
Other capital reserves 275,998,744.
422,398,744.97 146,400,000.00
97
Total 1,810,758,71
1,957,158,715.57 146,400,000.00
5.57
Notes：The Capital reserves decreased because of the changing of sellable financial assets fair
value in this period
（30）Surplus reserves
Items Balance in year-begin Increase in this period Decrease in this period Balance in year-end
Statutory Surplus reserves 164,481,109.54 164,481,109.54
Total 164,481,109.54 164,481,109.54
（31）Retained profit
Items Amount Extraction or distribution
of the ratio
Before adjustment: Ratained profit at the end of last year 904,494,101.24
Adjustment: Ratained profit at the beginning of current year 145,165,687.23
After Adjustment: Ratained profit at the beginning of current year
Add：Net profit attributable to the owners of parent company
Less：Withdrawing statutory surplus public reserve
Withdrawing statutory Discretionary surplus public reserve RMB 1.00 is to be paid
125,711,774.80 for every 10 shares
(Including tax )
Common stock dividend payable
Transferring into capital 923,948,013.67
Retained profit at the end of this term
（32）Operating income and operating cost
1. Operating income and operating cost
Report period Same period of the previous year
Items
Income Cost Income Cost
Main operation 510,248,592.90 250,846,387.43 497,351,944.58 239,243,285.93
Other operation 2,794,485.62 882,416.61 3,708,005.21 2,368,914.18
Total 513,043,078.52 251,728,804.04 501,059,949.79 241,612,200.11
1.Main operating （Industry）
Items Report period Same period of the previous year
103
Semi-Annual Report 2011
Income for main Cost for main
Income for main operation Cost for main operation
operation operation
Highway
Transportatio 507,588,565.04 248,557,433.17 494,822,677.00 237,412,173.03
n
Other 2,660,027.86 2,288,954.26 2,529,267.58 1,831,112.90
Total 510,248,592.90 250,846,387.43 497,351,944.58 239,243,285.93
2.Main operating（Product）
Report period Same period of the previous year
Items Income for main
Income for main operation Cost for main operation Cost for main operation
operation
Toll income 507,588,565.04 248,557,433.17 494,822,677.00 237,412,173.03
Other 2,660,027.86 2,288,954.26 2,529,267.58 1,831,112.90
Total 510,248,592.90 250,846,387.43 497,351,944.58 239,243,285.93
3. Main operating (Area)
Same period of the
previous
Report period year
Items Cost for
Income for main Income for main main
Cost for main operation
operation operation operatio
n
Guangfo 91,628,
146,510,487.80 109,952,449.62 137,148,247.00
Expressway 821.03
Fokai Expressway 130,637
337,633,538.24 119,629,880.42 337,523,145.00
,074.33
Jiujiang Bridge 15,146,
23,444,539.00 18,975,103.13 20,151,285.00
277.67
Other 1,831,1
2,660,027.86 2,288,954.26 2,529,267.58
12.90
239,243
Total 510,248,592.90 250,846,387.43 497,351,944.58
,285.93
5. The revenue of our company’s main business is transport tolls; it is inapplicable
for the top 5 clients’ operating income.
（34）Business tax and subjoin
Items Report period Same period of the previous year Standard
Business tax 16,230,403.22 15,863,674.51 3%、5%
Urban construction tax 1,132,163.78 752,414.04 7%
Education surcharge 487,041.64 311,105.33 3%
104
Semi-Annual Report 2011
Items Report period Same period of the previous year Standard
Defend expense 617,691.36 682,239.56 0.1-0.12%
Locality Education surcharge 324,529.41 2%
Culture Construction fee 53,072.40 55,404.01 3%
Other 2,044.89
Total 18,846,946.70 17,664,837.45
（35）Management expenses
Items Report period Same period of the previous year
Wage 36,364,239.48 27,557,692.79
Insurance expenses 33,584.26
Depreciation of fixed assets 3,274,579.42 2,848,364.89
Repairs fees 134,153.81 115,422.86
Amortization of intangible assets 24,869.28
Low consumables amortization 283,952.56 248,309.54
Entertatnment expenses 3,631,745.12 2,749,280.55
Travel Expenses 1,500,869.16 1,274,391.74
Office Expenses 1,500,865.45 2,036,451.56
Water and electricity 210,588.63 127,067.74
Taxes 993,573.99 591,569.34
Leased experses 1,120,598.33
Lawsuit expenses 187,653.00 137,407.00
The fee for hiring agency 2,660,272.00 816,840.00
Consultation expenses 173,309.52 146,300.00
Directorate Expenses 660,265.40 469,352.30
Other 8,229,132.03 7,948,581.02
Total 60,950,667.18 47,100,615.59
（36）Financial Expenses
Items Report period Same period of the previous year
Interest expense 105,880,137.33 83,770,286.09
Deposit interest income -1,236,450.20 -1,207,277.05
Exchange Income and loss
Other loss 9,339.08 3,912.38
Bank commission charge 189,345.72 338,168.64
Total 104,842,371.93 82,905,090.06
（37）Loss for depreciation of assets
Items Report period Same period of the previous year
1．Loss for bad debts -7,985.84
2．Loss for falling price of Inventory
105
Semi-Annual Report 2011
3．Loss for devaluation of financial asset available for sales
4．Loss for devaluation of held-to maturity investment
5．Loss for devaluation of long-term equity investment
6．Loss for devaluation of investing property
7．loss for devaluation of fixed assets
8．loss for devaluation of engineering materials
9．loss for devaluation of construction in progress
10．loss for devaluation
Of productive biological asset
11．loss for devaluation of oil asset
12．loss for devaluation of intangible asset
13．loss for devaluation of goodwill
14．other
Total -7,985.84
（38）Investment income
1. Investment income
Items Same period of the
Report period previous year
Long-term equity investment income by costing
Long-term equity investment income by equity method 147,765,406.79 190,006,307.13
Dispose the investment income from the long-term equity
investments
Hold the investment income which gained from the transactional
financial assets
Gain the investment income from the held-to-maturity investment
Hold the investment income during from available-for-sale
22,704,000.00
financial assets
Dispose the investment income from the transactional financial assets
Dispose the investment income from the held-to-maturity investment
Dispose the investment income from the available-for-sale
financial assets
Other
Total 170,469,406.79 190,006,307.13
2. long-term equity investment incomes did not confirm by equity method include:
3. long-term equity investment incomes confirmed by equity method include:：
Report Same period of Reason to increase
Unit
period the or decrease
106
Semi-Annual Report 2011
previous year
Guangdong Guanghui Decrease in net profit
71,874,271.44 89,942,507.92
Expressway Investment Unit
Decrease in net profit
Jingzhu Expressway Guangzhu 61,664,514.57 66,221,849.58
Investment Unit
Guangdong Maozhan
Decrease in net profit
Expressway 6,067,316.60 10,558,130.38
Investment Unit
Co., Ltd.
Decrease in net profit
Shenzhen Huiyan Expressway 22,488,363.32 25,949,602.19
Investment Unit
Guangdong Jiangzhong Increase in net profit
4,533,627.21 3,665,247.95
Expressway Investment Unit
Decrease in net profit
Zhaoqing Yuezhao Highway 2,234,885.38 9,975,863.69
Investment Unit
Guangdong Guangle Expressway -1,855,898.27 Not yet operate
Gankang Kangda Expressway -7,608,563.47 -16,306,894.58 Decrease in loss investment unit
Was operated by the end of last
-11,633,109.9
Ganzhou Gangkang Expressway period
9
from Investment Unit
147,765,406.7
Total 190,006,307.13
9
4. Undispose the investment income from the long-term equity investments
5. In the report period, the company has no big restriction on the investment earning repatriation.
（39）Non-operation income
1. Non-operation income
The amount of
Items Same period of the non-operating
Report period previous year gains & lossed
Total profits of non-current
13,500.00 401,983.70 13,500.00
assets disposal
Including：Fixed asset disposal profits 13,500.00 401,983.70 13,500.00
Intangible asset disposal profits
construction in progress disposal profit
Other
Debt restructuring profits
Non-monetary assets exchange profit
Donation income
Government Subsidy 71,600.00 50,000.00 71,600.00
107
Semi-Annual Report 2011
Check income
Income from liquidated dameges 3,378,400.00 3,378,400.00
Income from compensation 849,728.90 1,026,052.59 849,728.90
Insurance claims
25,941.91 14,425,000.00 25,941.91
income
Other 202,719.57 87,727.70 202,719.57
Total 4,541,890.38 15,990,763.99 4,541,890.38
2. Governmental subsidy details
Same period of the Explanation
Items
Report period previous year
Our company had received
the big tax-payer rewards from
Big tax-payer rewards 50,000.00 50,000.00
Guangzhou Baiyun District People’s
Government
Incentives of trade new auto
Incentives of trade new auto for old 21,600.00 for old of Guangzhou National
Resources Recycling Association
Total 71,600.00 50,000.00
（41）Non-Operation expense
The amount of
Items non-operating
Report period Same period of the previous year gains & lossed
1.Total of non-current asset Disposition loss 54,620,542.73 4,310,379.77 54,620,542.73
Incl: loss of fixed assets disposition 54,620,542.73 4,310,379.77 54,620,542.73
Loss of Intangible assets
disposition
construction in progress disposal loss
Other
Debt restructuring loss
Non-monetary assets exchange profit
Foreign donation
Unusual loss
Loss of profit and loss
Assets retirement, loss of mutilation
Expense of fine 331.29 188,638.18 331.29
Estimated surety loss
estimated pending action loss
estimated acquistion lose
expense of compensation and penal sum
108
Semi-Annual Report 2011
Other 142,065.19 123,486.93 142,065.19
Total 54,762,939.21 4,622,504.88 54,762,939.21
（41）Income tax expenses
Items Report period Same period of the previous year
The current income tax calculated by the
26,968,746.65 44,040,511.88
tax law and the relevant regulations
Adjustment of Deferred income tax 13,726,387.92 1,235,793.45
Total 40,695,134.57 45,276,305.33
（42）Calculation of Basic earnings per share and Diluted earnings per share
Same period of the
Items Line
Report period previous year
Net profit attributable to shareholders of parent
1 145,165,687.23 237,803,790.41
company
Nom-current gains and losses attributable to
2 -27,167,582.01 6,442,208.09
parent company
Net profit attributable to shareholders of parent
company after deduction of non-current gains and 3=1-2 172,333,269.24 231,361,582.32
losses
Total shares at the beginning of the year 4 1,257,117,748.00 1,257,117,748.00
Additional share capital transferred from public
reserve or additional shares from shares dividend 5
distribution
Additional shares from issuing new shares or
6
debt-converted shares
Accumulative months of the additional share
commencing from the nexi moth till the end of the 7
year
Decreased shares due to repurchase 8
Accumulative months of the decreased shares
commencing from the next month till the end of 9
the year
Months during the report period, 10 6 6
11=(4+6×7÷10-8
Weighted average of comm. Shares issued ×9÷10)×(4+5+6) 1,257,117,748.00 1,257,117,748.00
÷(4+6)
Basic earning per share 12=1÷11 0.12 0.19
Basic earning per share 13=3÷11 0.14 0.18
Diluted potential comm. Shares dividend
14
recognized as expense
109
Semi-Annual Report 2011
Income tax rate 15
Conversion expense 16
Weighted average of comm. Shares added
throuthwarrant, exercise of option and convertible 17
bonds
18=[1+(14-16)×(
Diluted earnings per share 0.12 0.19
1-15)]÷(11+17)
19=[3+(14 －
Diluted earnings per share 16)×(1-15)]÷(11 0.14 0.18
+17)
（43）Other comprehensive income
Items Amount of Amount of
current period previous period
1.Loss amount produced by sellable financial assets -146,400,000.00
Less：Deduct: income tax infection produced by sellable
financial assets
Net amount transferred into profit and loss at current period that
reckoned into other comprehensive income at former period
Subtotal -146,400,000.00
2. The enjoyed share in other comprehensive income of other
invested unit according to equity method
Less：Deduct: income tax infection produced from the enjoyed
share in other comprehensive income of other invested unit
according to equity method
Net amount transferred into profit and loss at current period
that reckoned into other comprehensive income at former period
Subtotal
3.. Benefit (or loss) amount produced from cash flow
Less：Deduct: income tax infection produced from cash flow
hedging instruments
Net amount transferred into profit and loss at current period
that reckoned into other comprehensive income at former period
Transferred to the adjustment of initial confirmation amount
of items at hedged period
Subtotal
4. Translating difference in foreign currency financial
reports
Less：Deduct: net amount that transferred into profit and loss
at current period in disposed overseas business
110
Semi-Annual Report 2011
Subtotal
5..Other
Less ： taxation infection arising from reckoning other
comprehensive income.
Net amount transferred into profit and loss at current period
that reckoned into other comprehensive income at former period
Subtotal
Total -146,400,000.00
Notes：The Company is an investment enterprise. After deduction of investment income not
subject to tax payment, tax loss occurs each year, which is to be made up in the future. Based on
the principle of prudence, the Company has not recognized deferred income tax assets
corresponding to uncovered losses. As it is expected that the income from the disposal of
financial assets available for sale is insufficient to make up the Company's tax loss, the Company
needs not pay income tax. Therefore, the Company will not calculate the influence on income tax
arising from these financial assets available for sale.
（44）Note Cash flow statement
1. Other cash received from business operation
1. Other cash received from business operation
Items Amount
Newwork received toll income 6,524,699.86
Quality Guarantee Fund，Deposit 2,355,243.22
Interest income 1,435,613.59
Other 9,926,535.16
Total 20,242,091.83
2. Other cash paid for business activities
Items Amount
Newwork received toll income 101,199.82
Management expense 16,843,122.93
Other 33,852,435.67
Total 50,796,758.42
（45）Supplement Information of Cash flow statement
1. Supplement Information of Cash flow statement
Same period of
Supplement Information the previous
Report period year
I.Adjusting net profit to net cash flow in operating
activities
111
Semi-Annual Report 2011
Same period of
Supplement Information the previous
Report period year
Net profit 156,235,497.90 267,875,467.49
Add: Asset devaluation reserve provided -7,985.84
Fixed assets depreciation,Oil and gas depreciation,
180,296,473.69 158,028,821.63
Produce matter depreciation
Amortization of intangible assets 4,043,657.10 3,761,384.58
Amortization of long-term expenses to be amortized 30,261.30 30,261.31
The loss from the disposal of fixed assets, intangible
54,607,042.73 3,908,396.07
assets and other long-term assets
Loss from scrapping of fixed assets
Loss from fair change
Financial expenses 105,880,137.33 83,770,286.09
Investment loss -170,469,406.79 -190,006,307.13
decrease of deferred tax assets
Increase of deferred tax Liabilities 13,726,387.92 1,235,793.45
Decrease of inventories 60,951.92 -55,808.85
Decrease of operating accounts receivable -14,710,936.61 -85,821,617.60
Increase of operating accounts payable -18,069,604.34 86,215,728.10
Other
Net cash flow generated from operating activities 311,622,476.31 328,942,405.14
II.Investment and financing activities not involving cash
receipts and expenditure
Transferring debts to capital
Convertible corporate bond to mature within one year
Leasing fixed assets through financing
III.Net increase of cash and cash equivalent
Balance of cash at the end of the period 263,138,688.46 597,399,737.09
Less: Balance of cash at the beginning of the period 258,881,333.75 218,754,995.03
Add: Balance of cash equivalent at the end of the period
Less: Balance of cash equivalent at the beginning of the
period
Net increase of cash and cash equivalent 4,257,354.71 378,644,742.06
2. Relevant information of subsidiaries and other business units obtained or disposed in current
period
Same period
Items of the
Report period previous year
112
Semi-Annual Report 2011
I. Relevant information on obtaining subsidiaries and other
business units
1．Price on obtaining subsidiaries and other business units
2．Cash and cash equivalents paid for obtaining subsidiaries and
other business units
Less ：Cash and cash equivalents held by subsidiaries and
other business units
3．Net cash paid by obtaining subsidiaries and other business
units
4．Net assets from obtaining subsidiaries
Current assets
Non- Current assets
Current Liabilities
Non- Current Liabilities
II. Relevant information on disposing subsidiaries and other
business units
1．Price on disposing subsidiaries and other business units
2．Cash and cash equivalents received by disposing subsidiaries
and other business units
Less ：Cash and cash equivalents held by subsidiaries and
other business units
3 ． Net cash received by disposing subsidiaries and other
business units
4．Net assets by disposing subsidiaries
Current assets
Non- Current assets
Current Liabilities
Non- Current Liabilities
3. Composition of cash and cash equivalents:
Balance in
Items Balance in year-end
year-begin
I. Cash 263,138,688.46 258,881,333.75
Incl：Stock cash 68,635.98 111,423.87
Bank deposits which can be used at any time 246,308,163.41 248,396,954.66
Other monetary funds which can be used at any
time 335,058.02 457,925.21
Money kept in central bank which can be used
Money deposited in same industry
Money separated in same industry
113
Semi-Annual Report 2011
II. Cash equivalent
Incl ：Bond investment due in three months
III. Balance of cash equivalent at the end of the period 263,138,688.46 258,881,333.75
Incl：Parent company and subsidiaries in the group
used the limited ash and cash equivalents 16,426,831.05 9,915,030.01
114
Semi-Annual Report 2011
VI. Related parties and related transactions
115
Semi-Annual Report 2011
Related parties
(1).Particulars about the parent company of the Company
The
parent
The
company The parent ultimate
Legal Registr of the company of
Related Registered controllin Organization Code
Name
parties
Tyep
address
represen Nature ated Compan the
tative Company’s g party of
capital y's
vote ratio the
sharehol
Company
ding
ratio
Equity
manage
ment,
Guangdo traffic Guangdo
ng No. 27, infrastru ng
Parent State Baiyyun Zhu
communi cture 2,680,00 communi
Compan owned Road,Yuexiu Xiaoli 0
40.81% 40.81% 723838552
cation y Co., Ltd. District , construc cation
ng
Group Guangzhou. tion and Group
Co., Ltd railway Co., Ltd
project
operatio
n
116
Semi-Annual Report 2011
Notes : Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company.
legal representative: Zhu Xiaoling. Date of establishment: June 23, 2000. As of June 30,
2011,Registered capital: RMB 26.8 billion. It is a solely state-owned limited company. Business
scope：equity management, organization of asset reorganization and optimized allocation, raising
funds by means including mortgage, transfer of property rights and joint stock system
transformation, project investment, operation and management, traffic infrastructure construction,
highway and railway project operation and relevant industries, technological development,
application, consultation and services, highway and railway passenger and cargo transport, ship
industry, relevant overseas businesses（if the above mentioned business scope requires
licenses to operate, then operation licenses are required）.
117
Semi-Annual Report 2011
2.Particulars of the subsidiaries
The
subsidiar
The
ies of the
Legal subsidiarie Organizatio
Related Registrate Compan
Name Tyep Registered address representat Nature s of the n Code
parties d capital y's
ive Company’s
sharehol
vote ratio
ding
ratio
Limited
Subsidi Zhou Expressway
Guangfo Expressway liability Shabei West,Guangzhou 20,000.00 75.00 75.00 61740143-7
ary Yuming Management
Company
Limited
Guangdong Fokai Subsidi No.83, Baiyun Road, Yuexiu Li Expressway
liability 110,800.00 75.00 75.00 23112431-8
Expressway ary District ,Guangzhou Xiyuan Management
Company
Investment in
Guangdong technical
Wholly-
Expressway Limited 4/F,Guangdong Expressway industries and
Owned Xiao
Technology liability Building, No.85, Baiyun Road, provision of 10,000.00 100.00 100.00 73145698-4
subsidiar Laijiu
Investment Co., Company Yuexiu District, Guangzhou relevant
y
Ltd. consulting
services
3. Infornation of Joint venture and Affiliated company
118
Semi-Annual Report 2011
Legal Registrated Held Share
Registrated Voting Related Orgabuzatuib
Name Type representat Nature capital proportion(
address proporting(%) parties code
ive （RMB’0000） %)
I. Joint venture
Limited
1.Guangdong Guanghui Guangzhou, Liu Expressway Joint
liability 2,351,678,000.00 30.00 30.00 70768541-0
Expressway Co., Ltd. Guangdong Gangliang Management venture
Company
Limited
2. Zhaoqing Yuezhao Zhaoqing, Wang Expressway Joint
liability 818,300,000.00 25.00 25.00 70815700-3
Highway Co., Ltd. Guangdong Jiachen Management venture
Company
Limited Organic fertilizer
Wang Joint
3.Beijing Gelin Enze liability Beijing production and 20,000,000.00 35.00 35.00 75941162-2
Jianji venture
Company sell
II. Affiliated company
Affiliate
Limited
1.Shenzhen Huiyan Shenzhen, Xu Expressway d
liability 36,000,000.00 33.33 33.33 19220379-2
Expressway Co., Ltd. Guangdong Xiaoyang Management compan
Company
y
Affiliate
Limited
2.Guangdong Maozhan Guangzhou, Expressway d
liability Li Jinfeng 1,120,000,000.00 20.00 20.00 70766863-7
Expressway Co., Ltd. Guangdong Management compan
Company
y
3. Jingzhu Expressway Limited Guangzhou, Expressway Affiliate
Lu Yaxing 580,000,000.00 20.00 20.00 61740144-5
Guanzhu liability Guangdong Management d
119
Semi-Annual Report 2011
Legal Registrated Held Share
Registrated Voting Related Orgabuzatuib
Name Type representat Nature capital proportion(
address proporting(%) parties code
ive （RMB’0000） %)
Company compan
y
Affiliate
Limited
4.Guangdong Jiangzhong Guangzhou, Expressway d
liability Lu Yaxing 1,045,000,000.00 15.00 15.00 74296235-6
Expressway Co., Ltd. Guangdong Management compan
Company
y
Affiliate
Other Limited
Ganzhou, Yao Expressway d
liability 600,000,000.00 30.00 30.00 77239039-5
5.Ganzhou Kangda Jiangzi Diming Management compan
Company
Expressway y
Affiliate
Limited
6.Ganzhou Gankang Gangzhou, Liu Expressway d
liability 700,000,000.00 30.00 30.00 79946719-6
Expressway Co., Ltd. Jiangxi Zequan Management compan
Company
y
Affiliate
Limited
7.Guangdong Guangle Guangzhou, Expressway d
liability Li Jinfeng 500,000,000.00 30.00 30.00 69693015-X
Expressway Co., Ltd. Guangdong Management compan
Company
y
120
Semi-Annual Report 2011
4. Other Related parties
Organization
Relation with the Company Code
Name
Fully owned subsidiary of the
Guangdong Expressway Co., Ltd. 190330413
parent company
Fully owned subsidiary of the
Guangdong Nanyue Logistics Co., Ltd. 719285123
parent company
Fully owned subsidiary of the
uangdong Changda highway Co., Ltd. 190334510
parent company
Fully owned subsidiary of the
Guangdong Guanyue Luqiao Co., Ltd. 231129768
parent company
Guangdong Hualu communication Technology Fully owned subsidiary of the
736195293
Co., Ltd. parent company
Fully owned subsidiary of the
Guangdong Shipping Planning and Design Institute 45585776-4
parent company
Guangdong Xinyue Communication Investment Fully owned Grandson Company of
707656521
Co., Ltd. the parent company
Fully owned Grandson Company of
Guangdong Gaoda Property Development Co., Ltd. 707685592
the parent company
Guangdong East Thinking Management Technology Fully owned Grandson Company of
724762107
Development Co., Ltd. the parent company
Fully owned Grandson Company of
Guangzhou Xinruan Computer Technology Co., Ltd. 725017352
the parent company
Guangdong Communication Development Fully owned Grandson Company of
190324937
Company the parent company
Guangdong Tongyi Expressway Services Fully owned Grandson Company of
724795996
Area Co., Ltd. the parent company
Fully owned Grandson Company of
Guangdong Lulutong Co., Ltd. 231125505
the parent company
Fully owned Grandson Company of
Guangdong Zhanjiang Bay Bridge Co., Ltd. 74083612-9
the parent company
Fully owned Grandson Company of
Guangdong Xinlu Adverting Co., Ltd. 74707234-4
the parent company
Fully owned subsidiary of the Foreign
Xinyue Co., Ltd.
parent company enterprise
Fully owned Grandson Company of
Guangzhou Xinyue Asphalt Co., Ltd. 714289942
the parent company
Fully owned Grandson Company of
Guangdong Highway Construction Co.,Ltd. 190335177
the subsidiary
Fully owned Grandson Company of
Guangzhou Putian Zhongzhi 71243167-7
the company
Guangdong Zhaoyang Expressway Co.,Ltd. Fully owned Grandson Company of 681314303
121
Semi-Annual Report 2011
Organization
Relation with the Company Code
Name
the parent company
Fully owned Grandson Company of
Guangdong Kaiyang Expressway Co., Ltd. 712226008
the parent company
Fully owned Grandson Company of
Guangdong Yuzhan Expressway Co., Ltd. 752877577
the parent company
Guangdong West Coast Expressway Trading Fully owned Grandson Company of
737563043
Co., Ltd. the parent company
Fully owned Grandson Company of
Guangdong Xintai Expressway Co., Ltd. 707969173
the parent company
Fully owned Grandson Company of
Guangdong Shanfen Expressway Co., Ltd. 71933918-7
the parent company
Fully owned Grandson
Guangdong Yunwu Expressway Co., Ltd. Company of 75108396X
the parent company
Fully owned Grandson
Guangdong Zhanjiang Bay Bridge Co., Ltd. Company of 740836129
the parent company
Fully owned Grandson
Guangdong Guangshao Expressway Co., Ltd. Company of 70766576X
the parent company
Fully owned Grandson
Guangdong Shanxi Expressway Co., Ltd. Company of 675660592
the parent company
Fully owned Grandson
Guangdong Zhanxu Expressway Co., Ltd. Company of 679739898
the parent company
Fully owned Grandson
Yunfu Guangyun Expressway Co., Ltd. Company of 744489224
the parent company
(II) Related transactions.
1. The transactions among the subsidiaries that have controlling relations and have
been incorporated into the consolidated accounting statements of the Company and
the transactions among the parent companies and subsidiaries have been offset.
2 Related transactions on purchasing goods and receiving services
Content of Pricing principle Amount in current period Amount in last period
Related parties related of related Proportio Proportio
Amount Amount
transaction transactions n（%） n（%）
1. Operating costs
Guangdong Receiving Market price 4,054,421.87 1.61
122
Semi-Annual Report 2011
Content of Pricing principle Amount in current period Amount in last period
Related parties related of related Proportio Proportio
Amount Amount
transaction transactions n（%） n（%）
Communication labor
Development
Company
Guangdong Changda Receiving
Market price 2,235,559.28 0.89 19,387,567.00 8.02
highway Co., Ltd. labor
Guangdong
Receiving
Guanghui Market price 962,500.00 0.38 900,000.00 0.37
labor
Expressway Co., Ltd.
Guangzhou Xinruan
Receiving
Computer Market price 130,300.00 0.05
labor
Technology Co., Ltd.
Guangdong Shipping
Receiving
Planning and Design Market price 1,800,000.00 0.74
labor
Institute
Guangdong Guanyue Receiving
Market price 3,988,324.00 1.65
Luqiao Co., Ltd. labor
Subtotal of Operating
7,382,781.15 2.93 26,075,891.00 10.79
costs
2. Management expenses
Guangdong Gaoda
Rent
Property
Management Market price 1,117,663.80 1.83 1,056,148.08 2.24
Development Co.,
fees
Ltd.
Subtotal of Management
1,117,663.80 1.83 1,056,148.08 2.24
expenses
3.Financial Expenses
Guangdong Guanghui
Interest Market price 2,359,350.00 2.25
Expressway Co., Ltd.
Guangdong Expressway
Interest Market price 85,062.50 0.08
Co., Ltd.
Guangdong
Communication Service Charge Market price 180,000.00 0.22
Group Co., Ltd.
Subtotal of financial
2,444,412.50 2.33 180,000.00 0.22
expenses
4. Construction on
process
Guangdong Changda
Project fund Market price 130,628,036.00 26.13 131,801,028.00 25.97
highway Co., Ltd.
Guangdong Guanyue Project fund Market price 87,105,657.00 17.42 39,385,426.00 7.76
123
Semi-Annual Report 2011
Content of Pricing principle Amount in current period Amount in last period
Related parties related of related Proportio Proportio
Amount Amount
transaction transactions n（%） n（%）
Luqiao Co., Ltd.
Guangdong Expressway
Project fund Market price 9,583,404.53 1.92
Co., Ltd.
Guangdong Hualu
communication Project fund Market price 1,365,089.00 0.27
Technology Co., Ltd.
Guangdong Xinyue
Communication Project fund Market price 284,014.20 0.06
Investment Co., Ltd.
Subtotal of Construction
228,966,200.73 45.80 171,186,454.00 33.73
on process
Related transactions on sale goods and receiving services
Content of Pricing principle Amount in current period Amount in last period
Related parties related of related Proportion
Amount Amount Proportion（%）
transaction transactions （%）
Operating Income
Guangdong Expressway
Rent Market price 301,838.52 0.11 301,838.52 0.12
Co., Ltd.
Guangdong Guanyue
Rent Market price 133,860.00 0.05 133,860.00 0.05
Luqiao Co., Ltd.
Zhaoqing Yuezhao Project
Market price 445,158.00 0.17
Highway Co., Ltd. fund
Subtotal 435,698.52 0.16 880,856.52 0.34
4.Other Relationships Transactions
（1）The 3rd meeting of the sixth board of directors of the Company was held on
April 22,2010, The meeting examined and adopted the Proposal for Borrowing
Entrusted Loan from Guangdong Guanghui Expressway Co., Ltd. ,The Company
was approved to apply to Guanghui Company for an entrusted loan. The amount of
loan is RMB One Hundred and Five Million Only (RMB 105,000,000.00) and the
term of loan is half a year. The interest rate of loan is the loan rate quoted by
People's Bank of China in the same period at 10% discount. The principal and
interest of loan will be repaid in lump sum on the maturity day. After expiration of
the loan, the Company may renew the entrusted loan contract with Guanghui
Company with loan term and loan interest rate remaining unchanged. As of June
30, 2011, The Company has not borrowed the above-mentioned entrusted loan from
Guangdong Guanghui Expressway Co., Ltd.
（2）Our controlled subsidiary company guang-fo highway Co., Ltd. is building an extension for
the section from yayao to xiebian. May 20, 2005,Guang-fo highway Co., Ltd. and Guangdong
province highway Co.,Ltd. had signed 《 the agreement of construction and management
entrustment in Guang-fo highway extension project for the section from yayao to xiebie》in
Guangzhou. This agreement and its complementary agreement had been approved and made
124
Semi-Annual Report 2011
effective by the resolutions of the 2nd provisional shareholders’ meeting held by our company in
Feb. of 2008. According to above agreement, Guang-fo highway Co.,Ltd. will entrust the
construction and management of Guang-fo highway extension project for the section from yayao
to xiebie to Guangdong province highway Co.,Ltd. and will pay the construction & management
Fee of entrustment.,Our controlled subsidiary company guang-fo highway Co., Ltd. should pay
construction & management Fee of entrustment to Guangdong Expressway Co.,Ltd. This
extension project has been finished and was commissioning in December 23，
2009.As of June 30, 2011, Guangfo Expressway expansion project has not been
completed budget of the project.
(3)Our controlled subsidiary company Guangdong Fokai Expressway Co.,Ltd. is planning to
carry out expansion & reconstruction for the section from xiebian to sanbao. On May 20,
2005,Guangdong Fokai Expressway Co.,Ltd. and Guangdong Expressway Co.,Ltd. had signed
《the agreement of construction and management entrustment in fo-kai highway extension
project for the section from xiebian to sanbao》.This agreement and its complementary agreement
had been approved and made effective by the resolutions of the 2nd provisional shareholders’
meeting held by our company in Feb. of 2008. According to the above agreement, Guangdong
Fokai Expressway Co.,Ltd. will entrust the construction and management of fo-kai highway
extension project for the section from xiebian to sanbao to Guangdong Expressway Co.,Ltd. and
Guangdong Fokai Expressway Co.,Ltd. will pay the construction & management Fee of
entrustment to Guangdong Expressway Co.,Ltd.
（4）On June 15, 2007，The 325 Jiujiang Bridge collapsed on # 23 pier for “Nanguijii 035”
collision owned by the controlling subsidiary of the company Guangdong Fokai Expressway
Company leads the collapse and the traffic jam of 200 meters long of the Jiujiang Bridge
One of the shareholders of Guangdong Fokai Expressway Company, Guangdong Provincial
Expressway Company, established National Road 325 Jiujiang Bridge Restoration Project Office
on June 18,2007, responsible for the repair works of Jiujiang Bridge and related management
work. The restoration has been finished and was open in June 10, 2009.As of June 30,
2011, The final restoration is not complete.
5. Receivables of the related party
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Account receivable
Guangdong Lulutong Co., Ltd. 18,004.85 9,002.43 18,004.85 5,401.46
Zhaoqing Yuezhao Highway
364,558.00
Co., Ltd.
Guangdong Maozhan Expressway
314,688.00
Co., Ltd.
Guangdong Yuzhan Expressway
285,876.00
Co., Ltd.
Total 18,004.85 9,002.43 983,126.85 5,401.46
Prepayment
Guangdong Changda Highway 90,976,155.60 101,793,950.60
125
Semi-Annual Report 2011
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Engineering Co., Ltd.
Guangdong Guanyue Luqiao
40,544,095.00 37,878,217.00
Co., Ltd.
Guangdong Hualu
CommunicationTechnology Co., 200,000.00 200,000.00
Ltd.
Guangdong Communication
393,449.80
Development Company
Subtotal 131,720,250.60 140,265,617.40
Other receivable
Beijing Gelin Enze 12,220,079.91 12,220,079.91 12,220,079.91 12,220,079.91
Guangzhou Putian Zhongzhi 3,601,000.00 3,601,000.00 3,601,000.00 3,601,000.00
Guangdong Guanghui Expressway
500,000.00 500,000.00
Co., Ltd.
Zhaoqing Yuezhao Highway
489,616.22 384,491.50
Co., Ltd.
Guangdong Kaiyang Expressway
469,465.03 44,479.00
Co., Ltd.
Guangdong Maozhan Expressway
93,510.88
Co., Ltd.
Guangdong Gaoda Preperty
91,500.00 91,500.00
Development Co., Ltd.
Guangdong Yunwu Expressway
57,998.49
Co., Ltd.
Yunfu Guangyun Expressway
37,902.69
Co.,Ltd.
Guangdong Highway Co., Ltd. 30,459.29
Guangdong Shanfen Expressway
24,486.00 24,486.00
Co., Ltd.
Guangdong Yuzhan Expressway
17,449.47
Co., Ltd.
Guangdong Zhanjiang Bay Bridge
13,404.86 13,404.86
Co., Ltd.
Guangdong Guangshao Expressway
3,762.70
Co., Ltd.
Guangdong Shenshan West
3,489.22
Expressway Co., Ltd.
Guangdong Xinyue Communication
2,158.60 2,158.60
Investment Co., Ltd.
Guangdong Expressway Co., Ltd. 1,219.97
126
Semi-Annual Report 2011
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Guangdong Tongyi
Expressway Services Area 329.51 329.51
Co., Ltd.
Guangdong Xintai Expressway
272.43
Co.,Ltd.
Guangdong Zhanxu Expressway
29.60
Co., Ltd.
Guangdong Zhaoyang Expressway
1.83
Co., Ltd.
Subtotal 17,657,864.27 15,821,079.91 16,882,201.81 15,821,079.91
Notes：The receivables from related parties can be offset if the related transaction is agreed to
settle on the net basis, after that, the amounts can be listed.
6.Payables of the related party
Amount at
Name Related party Amount at year end year
beginning
Account payable
Guangdong Hualu communication
730,109.00 763,409.00
Technology Co., Ltd.
Guangdong Changda highway Co., Ltd. 16,508,982.50 16,130,760.92
Guangdong Expressway Co., Ltd. 13,728,261.18 13,855,418.78
Guangdong Communication Development
7,203,453.43 8,623,866.82
Co., Ltd.
Xinyue Communication Investment
3,737,237.49 4,096,611.29
Co., Ltd.
Guangdong Guanyue Luqiao Co., Ltd. 2,764,367.00 14,387,350.00
Guangdong Guanghui Expressway
2,750,000.00 1,787,500.00
Co., Ltd.
Guangdong East Thinking Management
207,804.00 207,804.00
Technology Development Co., Ltd.
Guangzhou Putian Zhongzhi 99,447.00 99,447.00
Guangdong Shipping Planning and
3,120,686.90
Design Institute
Guangdong Xintai Expressway Co., Ltd. 146,527.06
Guangdong Yuzhan Expressway Co., Ltd. 93,083.24
Guangdong West Coast Expressway
74,631.77
Trading Co., Ltd.
Subtotal 47,729,661.60 63,387,096.78
Advance
127
Semi-Annual Report 2011
Amount at
Name Related party Amount at year end year
beginning
account
Guangdong Expressway Co., Ltd. 694,228.60 996,067.12
Subtotal 694,228.60 996,067.12
Interest
Payable
Guangdong Guanghui Expressway Co., Ltd. 2,359,350.00
Subtotal 2,359,350.00
Other
payable
Guangdong Changda highway Co., Ltd. 64,444,933.68 67,265,709.58
Guangdong Expressway Co., Ltd. 54,294,264.94 41,859,802.55
Guangdong Guanyue Luqiao Co., Ltd 20,507,827.88 20,703,516.68
Guangdong Communication Development
2,108,888.90 3,548,934.87
Company
Xinyue Communication Investment
1,131,115.35 1,070,615.35
Co., Ltd.
Guangdong Shipping Planning and
Design 819,552.00 819,552.00
Institute
Guangdong Hualu communication
272,754.50 272,754.50
Technology Co., Ltd.
Guangzhou Putian Zhongzhi 170,923.84 170,923.84
Guangdong Shenshan West Expressway
76,161.52
Co., Ltd.
Guangdong Yuzhan Expressway Co., Ltd. 67,185.13
Guangdong West Coast Expressway
53,466.67 9,006.18
Trading Co., Ltd.
Guangdong Xinlu Adverting Co., Ltd. 30,000.00 30,000.00
Guangzhou Xinruan Computer
Technology 27,500.00 27,500.00
Co., Ltd.
Guangzhou Xinyue Asphalt Co., Ltd. 3,100.00 3,100.00
Guangdong Zhanxu Expressway Co., Ltd. 203.25
Guangdong Zhaoyang Expressway Co., Ltd. 3.29
Guangdong Tongyi Expressway
160,000.00
Services Area Co., Ltd.
Subtotal 144,007,880.95 135,941,415.55
Notes：The receivables from related parties can be offset if the related transaction is agreed to
settle on the net basis, after that, the amounts can be listed.
128
Semi-Annual Report 2011
VII. Contingency
(1)Pending aciton or arbitrationformative or indebted
There is no event happened in this accounting period.
（2）The contingent liabilities formed by the debt guarantee provided by related parties and other
units
There is no event happened in this accounting period.
（3）Other Events
There is no event happened in this accounting period.
VIII. Commitment events .
(I) The foreign investment contracts which had signed but not fulfilled or not completely fulfilled
and the related financial expenditure.
1. The controlling Subsidiary of the Company Fokai Expressway Co., Ltd is expanding the
construction of Yayao Xiebian Yayao – Xiebian. On May 22, 2007, Guangdong Development &
Reform Commission issued Gaijiaoyun [2007] No.1119 File, the Official Reply to the approval
of the project of Guangdong Xiebian-Sanbao Highway Expansion Construction from State
Development and Reform Commission: Approved the expansion project of Xiebian- Sanbao
Highway, with the investment of the project for 3.71 billion Yuan, of which: the capital 1.47
billion Yuan by the Guangdong Fokai Expressway Co., Ltd, the remaining funds 2.24 billion
Yuan by loans from domestic banks. On April 3, 2008, State Highway Traffic Department
released TAC [2008]No. 16, : the total budget approved as RMB 4,002,409,114.00, total construction
period of the project is (since the date of opening) four years.
2. The Company held the second provisional Shareholders’ General meeting on
September 28, 2009 , The meeting examined and adopted to review and approve the
Motion of Investing in 30% Equity of Guangzhou-Lechang Expressway Project. The
board of directors consented to invest RMB2,561.914 million in 30% equity of
Guangzhou-Lechang highway project. Total investment and capital invested by
shareholders shall be the final accounts approved by the competent government
authority. As of June 30, 2011, The company has invested accumulated RMB
629.9975 million.
3. On September 18, 1998, the company signed the Contract on Cooperative Construction &
Operation of JingZhu Expressway (Tangtang-Taihe) with Guangdong Road & Bridge
Construction & Development Company, Dajian Industrial Co., Ltd, Guangdong Communications
Department and the Office of Introduction of Foreign Capital, the four parties, and cooperated to
establish Jingzhu(Tangtang –Taihe) Expressway Co., Ltd, and cooperated to construct, operate,
manage the Jingzhu expressway and its supporting facilities. The total investment of the first
phase of the project is about 2600.00 million Yuan, the registered capital of the first phase of the
cooperation company is 910 million Yuan. The capital proportion of the Company is 25%, the
investment amount 227.50 million Yuan. This contract is awaiting approval from the relevant
Government Department. As of June 30, 2019, the fund of the Company has not invested yet.
4. In May 2000, the Company signed the Contract on Construction & operation of the
Expressway of Ji ngzhu Major Route Xiaotang-Gantang, and cooperated to establish
Guangdong Jingzhu North Expressway Co., Ltd to construct and operate the expressway of
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Jingzhu Major Route Xiaotang-Gantang. The total investment of the project is 5657million Yuan,
the registered capital 566.70 million Yuan. The capital of the project( including the registered
capital)is 35% of the general investment, namely 1,979.95 million Yuan, the investment
proportion of the Campany 10%. The capital other project shall be paid according to the
investment proportion. The investment amount of the project of the company is 1,979.95 million
Yuan. Guangdong Expressway Co., Ltd is responsible for the construction of the project. This
contract is awaiting approval from the relevant Government. As of June 30, 2019, Department.
the fund of the Company has not invested yet.
5. The 8th (Provisional )meeting of the sixth board of directors of the Company was
held on January 7, 2011., The meeting examined and adopted the Proposal for
Extending Entrusted Loan to Guangfo Expressway Co., Ltd. and approved the
Company to extend entrusted loan of RMB 60 million with a term of 6 months to
Guangfo Expressway Co., Ltd., a controlled subsidiary. The interest rate of the
entrusted loan is the interest rate of the loans with the same class extended by
People's Bank in the same period at a discount of 10%. The loan will be extended in
lump sum and can be repaid in advance as required. The meeting also authorized the
management of the Company to carry out concrete matters.
The 11th (Provisional )meeting of the sixth board of directors of the Company was
held on March 5, 2011., The meeting examined and adopted the Proposal for
Extending Entrusted Loan to Guangfo Expressway Co., Ltd. and approved the
Company to extend entrusted loan of RMB 5 million with a term of 3 months to
Guangfo Expressway Co., Ltd., a controlled subsidiary. The interest rate of the
entrusted loan is the interest rate of the loans with the same class extended by
People's Bank in the same period at a discount of 10%. The loan will be extended in
lump sum and can be repaid in advance as required. The meeting also authorized the
management of the Company to carry out concrete matters.
The 12th (Provisional )meeting of the sixth board of directors of the Company was
held on March 24, 2011., The meeting examined and adopted the Proposal for
Extending Entrusted Loan to Guangfo Expressway Co., Ltd. and approved the
Company to extend entrusted loan of RMB 50 million to be distrubuted into two
term of 35 million and 15 million respectively, and will be repaid in twice, the two
terms will be one year respectively to Guangfo Expressway Co., Ltd., a controlled
subsidiary. The interest rate of the entrusted loan is the interest rate of the loans with
the same class extended by People's Bank in the same period at a discount of 10%.
The loan will be extended in lump sum and can be repaid in advance as required.
The meeting also authorized the management of the Company to carry out concrete
matters.
The 15th (Provisional )meeting of the sixth board of directors of the Company was
held on June 28, 2011., The meeting examined and adopted the Proposal for
Extending Entrusted Loan to Guangfo Expressway Co., Ltd. and approved the
Company to extend entrusted loan of RMB 90 million with a term of 12 months to
Guangfo Expressway Co., Ltd., a controlled subsidiary. The interest rate of the
entrusted loan is the interest rate of the loans with the same class extended by
People's Bank in the same period at a discount of 10%. The loan will be extended in
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lump sum and can be repaid in advance as required. The meeting also authorized the
management of the Company to carry out concrete matters.
As of June 30, 2011，The balance of entrusted loan extended by the Company to
Guangfo Expressway Co., Ltd., a controlled subsidiary, is RMB 105 million.
6. The 15th (Provisional )meeting of the sixth board of directors of the Company was
held on June 28, 2011., The meeting examined and adopted the Proposal for
Extending Entrusted Loan to Guangdong Expressway Technoogy Investment Co.,
Ltd. and approved the Company to extend entrusted loan of RMB 10 million with a
term of 5 years to Guangdong Expressway Technoogy Investment Co., Ltd., a
controlled subsidiary. The interest rate of the entrusted loan is the interest rate of the
loans with the same class extended by People's Bank in the same period at a discount
of 10%. The loan will be extended in lump sum and can be repaid in advance as
required. The meeting also authorized the management of the Company to carry out
concrete matters.
As of June 30, 2011，The balance of entrusted loan extended by the Company to
Guangdong Expressway Technoogy Investment Co., Ltd., a controlled subsidiary, is
RMB 0.
7.On December 27, 2007, On December 27, 2007，"Contract on Capital Increase and Shares
Enlargement of Ganzhou Gankang Expressway Co., Ltd." and "Contract on Joint Capital of
Ganzhou Gankang Expressway Co., Ltd." are be signed by our company and Ganzhou Company.
We are one of shareholders of Gankang company through the method of the capital contribution
subscribed with holding 30% equity, and 70% hold by Ganzhou Company. According to the
agreement and essential spirit in Clause and other provisions of "Contract on Joint Capital of
Ganzhou Gankang Expressway Co., Ltd.", we will invest, operate and obtain the corresponding
income by Gankang company, based on the project of "Ganzhou Ganjiang Highway Bridge"
gaining and owning the long-term treatment of project-set of independent charge business. At
present, the relevant approval procedures are being checked according to law with the bridge to
be "without stations and free of charge" depending on the relative documents of Ganzhou
People's Government. Thus, according to the relevant agreement of "Contract on Capital Increase
and Shares Enlargement of Ganzhou Gankang Expressway Co., Ltd." through friendly
consultations, the parties jointly decide to entirely stripping the project of "Ganzhong Ganjing
Highway Bridge" from Ganzhou Company, and then Gankang company will never involve in the
investment and operation of the project.
On January 15, 2011，Our company has signed < Stripping Agreement of Ganjiang Road Bridge
Project> with Ganzhou gankang expressway Co., Ltd. and Ganzhou expressway Co., Ltd.
Ganzhou Gankang expressway Co., Ltd. will strip whole “Ganzhou City Ganjiang Road Bridge
Project” and transfer it to Ganzhou expressway Co., Ltd. which will take over its related
employees. Ganzhou expressway Co., Ltd. shall pay RMB 505,192,521.84 and related interests
occurred in payment term to Ganzhou gankang expressway Co., Ltd. by Jun. 30th,2011. Ganzhou
gankang expressway Co., Ltd. will only make investment, construction, operation and
management on Ganzhou-Dayu expressway project (Maodian-Sanyi section). This settlement
will be made as per the net book value of Ganjiang Road Bridge, which will not cause profit or
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loss to our company’s investment. the related formalities stayed unfinished, by the end of he
approval of financial reports
8. The 9th (provisional) meeting of the sixth Board of Directors of Guangdong Provincial
Expressway Development Co., Ltd. was held in the meeting room of the Company was held in
the manner of voting by correspondence in the morning of January 31, 2011 (Monday). The
Meeting examined and adopted the Proposal on the Issue Size of Company Less than
or Equal to RMB1 Billion in Medium Term Note. Approving the company to
register the outstanding balance less than or equal to RMB1 Billion in MTN on the
National Association of Financial Market Institutional Investors, the registered
amount isn’t excess of the current issue of 40% net assets audited. The term of issue
doesn’t exceed 5 years (including 5-year), the raised funds are used to meet the
needs of funds of production and management, and improve the financial structure of
company.
This proposal had been approved by the first provisional shareholders meeting in 2011, which
was held on Feb.28th 2011。
9. The 9th (provisional) meeting of the sixth Board of Directors of Guangdong Provincial
Expressway Development Co., Ltd. was held in the meeting room of the Company was held in
the manner of voting by correspondence in the morning of January 31, 2011 (Monday). The
meeting examined and adopted the Proposal on Applying to Guangdong Transportation
Group Co., Ltd. for Entrusted Loans.Approving the company to apply to the
controlling shareholder of Guangdong Transportation Group Co., Ltd. for the
entrusted loans of RMB 80 Million for the daily management turnover with a period
of 1 year, the interest rate of load will float down 10% based on People's Bank of
basic rate of interest for loans of the time. For this load is Credit, the debts can be
repaid in advance as necessary, and the specific implementation can also be
authorized to the operation team.As of June 30, 2011, the company did not loan
above-mentioned loan.
(II)Contingent liability formed by providing debt guarantee to other unit and its influence on
finance
The controlling subsidiary of the company Guangdong Expressway Technology Investment Co.,
Ltd. signed the and related
supplementary agreements with Guangdong Guanghui Expressway Co., Ltd., Guangdong
Expressway Technology Investment Co., Ltd. leased advertisement position from Guangdong
Guanghui Expressway Co., Ltd. the total rental fee reduced to 25.20 million Yuan, the leasing
period from July 1, 2006 to June 30, 2016.
IX. Post-balance-sheet issues.
The 14th meeting of the sixth board of directors of the Company was held in the
form of on-the-spot meeting on June 9, 2011. The meeting examined and adopted the
Proposal Concerning the Plan of the Company for Issue of Shares to Purchase Assets.
The Company was approved to privately issue 566,335,091 shares to Guangdong
Highway Construction Co., Ltd. at a price not lower than the average trading
price(4.93yuan/shares) the Company's stocks in the 20 trading days before the base
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day of pricing to purchase 100% equity of Guangzhou Guangzhu Communication
Investment Management Co., Ltd. held by it. The transaction price is RMB
2792.0320 million. This transaction price was determined according to the appraised
value mentioned in Zhong Qi Hua Ping Bao Zi (2011) No. 1170-01 "Appraisal
Report on 100% Equity of Guangzhou Guangzhu Communication Investment
Management Co., Ltd. Held by Guangdong Highway Construction Co., Ltd. to Be
Purchased by Guangdong Expressway Development Co., Ltd. through Issuing
Shares to Guangdong Highway Construction Co., Ltd." issued by Beijing
Zhongqihua Assets Appraisal Co., Ltd. and filed with Guangdong State-owned
Assets Commission. 2The second provisional shareholders' general meeting in 2011
held on July 14, 2011 vetoed this proposal.
X. Other events
1．Fokai Expressway has operated Jiujiang Bridge’s management and maintain,2007, June 15
early in the morning, The 325 Jiujiang Bridge collapsed on # 23 pier for “Nanguijii 035”
collision owned by the controlling subsidiary of the company Guangdong Fokai Expressway
Company leads the collapse and the traffic jam of 200 meters long of the Jiujiang Bridge. On
June 10, 2009, Jiujiang Bridge opened to traffic has been restored.
On June 19,2007， The Ministry of Communications, the State Production Safety Supervision
and Administration Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on
the Guangdong"6.15 "Jiujiang Bridge Collision Accident", initially determined the causes of the
accident are: the incident ship suddenly met heavy fog on the way from Foshan Gaoming to
Sunde, the captain neglected looking out, did not take proper measures and deviated from the
main channel, touched the 325 National Road Jiujiang Bridge the non-navigation bridge pier and
caused the collapsion of part of the Jiujiang bridge. The accident was an unilateral responsibility
of the ship.
On July 19,2007，Fokai Company applied preservation of property to Guangzhou Maritime
Court.On August 22,2007，Fokai Company officially prosecuted to Guangzhou Maritime Court,
asking Foshan South Sea Shipping Company Limited and Yang Xiong to undertake the
conpensation 25,587,684 yuan for the loss caused by collapsion of Jiujiang Bridge. On August
28, 2007, Guangzhou Maritime Court accepted the case. According to the (2007)-Canton Haifa
No. 332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case was
suspended.
After the court accepted the case, the incident investigation team of Guangdong Provincial
Government had not made the final report of Jiujiang Bridge accident. The Court, on November
5, 2007, decided to suspend the proceeding. In September 2008, Jiujiang Bridge accident
investigation report was officially reported and resumed the proceedings. On December 5, 2008,
Guangzhou Marine Court opened a court trial to procceeded the case. Currently, Guangzhou
Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide, therefore, on
January 5, 2009, Guangzhou Maritime Court ruled the suspension of the case.
2. On Fubruary 23, 2009，As the common applicant, Guangdong Expressway Technology
Investment Co., Ltd. and Guangzhou branch of CHINA MINSHENG BANKING CORP.,LTD.
had lodged a lawsuit in the Guangzhou municipal Intermediate People's Court against
Guangzhou Putianzhongzhi Technology Industrial Co., Ltd. and applied for the bankruptcy and
liquidation in Guangzhou Putianzhongzhi Technology Industrial Co., Ltd. as it can’t pay back the
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due debts, On Jun. 3rd, 2009, the court made the judgment and accept the bankruptcy and
liquidation application from applicant and appointed Guangdong Guangda Law Firm as the
custodian of Guangzhou Putianzhongzhi Technology Industrial Co., Ltd. The custodian had
provided on Nov.16th, 2009 and applied to the court for closing the case. On Nov.
30th, 2009, Guangzhou municipal Intermediate People's Court made the civil ruling paper
(Guangdong IPC civil bankruptcy 2009 No. 4-8), (1) This judgment will end the bankruptcy and
liquidation procedures on Guangzhou Putianzhongzhi Technology Industrial Co., Ltd. (2) The
custodian of Guangzhou Putianzhongzhi Technology Industrial Co., Ltd. should take this
judgment to its original registration authority for cancelling its registration. the registration
cancellation of Guangzhou Putianzhongzhi Technology Industrial Co., Ltd. is in processing.
3.In June 2003, Guangdong Expressway Technology Investment Co., Ltd., a
wholly-owned subsidiary of the Company, signed Entrusted Loan Agreement with
Beijing Bank and Beijing Gelin Enze Organic Fertilizer Co., Ltd. According to the
agreement, Guangdong Expressway Technology Investment Co., Ltd. entrusted Xisi
Sub-branch of Beijing Bank to lend RMB 8 million to Beijing Gelin Enze Organic
Fertilizer Co., Ltd. with a term of one year. Meanwhile, Guangdong Expressway
Technology Investment Co., Ltd. Beijing Gelin Enze Organic Fertilizer Co., Ltd. and
Wang Jianji (the board chairman of Beijing Gelin Enze Organic Fertilizer Co., Ltd.)
jointly signed Guarantee Contract. According to the contract, Wang Jianji shall bear
joint liability for repayment in respect of the loan of RMB 8 million and
corresponding interests, damages and expenses.
As Beijing Gelin Enze Organic Fertilizer Co., Ltd. failed to repay due borrowings,
Guangdong Expressway Technology Investment Co., Ltd. brought an action against
Wang Jianji to Guangdong Guangzhou Yuexiu District People's Court on May 31,
2006.
On September 11, 2008, Guangzhou Intermediate People's Court judged case
transfer for jurisdiction. Beijing Xicheng District People's Court held hearings on
September 16, 2009. 2On April 15, 2010, Beijing Xicheng District People's Court
issued (2009) Xi Min Chu Zi No. 5881 Civil Judgment and judged that Guangdong
Expressway Technology Investment Co., Ltd. won the lawsuit. The Defendant
refused to accept the judgment and instituted an appeal to Beijing First Intermediate
People's Court. 2On October 19, 2010, Beijing First Intermediate People's Court
made the final judgment and issued (2010) Yi Zhong Min Zhong Zi No. 10701 Civil
Judgment to reject the appeal of the Defendant and maintain the original judgment in
the first instance.
In November 2010, Guangdong Expressway Technology Investment Co., Ltd.
applied to the court for enforcement in respect of the attached 2.5 flats of the
Defendant. 2On February 15, 2011, the court informed that the procedure for placing
enforcement on file had been completed. File No.: (2011) Xi Zhi Zi No. 00039. At
present, the enforcement procedure is still being implemented.
3.Guangdong Expressway Technology Investment Co., Ltd., a wholly-owned
subsidiary of the Company, lent RMB 1.50 million to Beijing Gelin Enze Organic
Fertilizer Co., Ltd. for short-term fund circulation respectively in January and
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Semi-Annual Report 2011
February of 2005 (RMB 3 million in total) according to the application of this
company.
As Beijing Gelin Enze Organic Fertilizer Co., Ltd. failed to repay due borrowings,
Guangdong Expressway Technology Investment Co., Ltd. brought an action against
this company to Beijing Changping District People's Court. 2On July 25, 2006,
Beijing Changping District People's Court issued (2006) Chang Min Chu Zi No.
7131 Civil Judgment and judged that Beijing Gelin Enze Organic Fertilizer Co., Ltd.
should repay RMB 3 million to Guangdong Expressway Technology Investment Co.,
Ltd.
On December 28, 2006, Guangdong Expressway Technology Investment Co., Ltd.
applied to the court for compulsory enforcement. 2In June and September of 2008,
the court put the properties of Beijing Gelin Enze Organic Fertilizer Co., Ltd. up for
auction twice but failed to sell them. At present, the enforcement procedure is still
being implemented.
XI. Parent company financial statements
（1）Other receivables
1. Type analyse：
Amount in year-end Amount in year-begin
Book Balance Bad debt povision Book Balance Bad debt povision
Type Amount Propo Amount Propo Amount Propo Amount Propor
rtio( rtio( rtio( tio(%)
%) %) %)
Individually
significant accounts 33,198,382.12 83.74 33,198,382.12 100.00 33,198,382.12 85.26 33,198,382.12 100.00
receivable
Group
I:Receivables
providedbad debt 36,331,616.90 16.26 1,658,571.80 40.89 5,737,877.70 14.74 1,658,571.80 52.38
provision In the
group
Group I:Other
Receivables
account reveivables
on which bad debt 4,056,219.07 10.23 1,658,571.80 40.89 3,166,552.84 8.13 1,658,571.80 52.38
provisions are
provided on other
basis
Group II ： Other
Receivables
account reveivables
on which bad debt 2,389,042.27 6.03 2,571,324.86 6.60
provisions are
provided on other
basis
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Semi-Annual Report 2011
Amount in year-end Amount in year-begin
Book Balance Bad debt povision Book Balance Bad debt povision
Type Amount Propo Amount Propo Amount Propo Amount Propor
rtio( rtio( rtio( tio(%)
%) %) %)
Other
non-material other
receivables
Total 39,643,643.46 100.00 34,856,953.92 87.93 38,936,259.82 100.00 34,856,953.92 89.52
2. There is significant amount or the test of depreciation of value of bad debts provision of
accounts receivable at the ending.
Amount of bad Proportion
Other receivables Book balance Reasons
debts (%)
Kunlun Securities Co., Ltd. 33,198,382.12 33,198,382.12 100.00% 注
Total 33,198,382.12 33,198,382.12
Notes Notes : For the balance amount of our company’s security trading settlement funds RMB
33.68377479 million deposited in Kunlun Securities Co., Ltd., The Xi’Ning municipal
Intermediate People's Court of Qinghai Province had made the judgment in accordance with the
law and declared on Nov. 11st, 2006 that Kunlun Securities Co., Ltd. was bankrupted for debt
payment. In Mar. of 2007, the liquidating group of Kunlun Securities preliminary judged the
relationship between our company and Kunlun Securities Co., Ltd. is debtor creditor relationship.
As Kunlun Securities Co., Ltd. was bankrupted for debt payment and it is in serious insolvency,
our company had moved the security trading settlement funds deposited in Kunlun Securities Co.,
Ltd., to other receivables account for reflection, we also have made full amount provision for bad
debts based on conservatism principle. The recovered debt amount in 2008 is RMB 10,349.92
which had been offset from the provision for bad debts.
3. Other Account reveivables on which bad debt provisions are provided on age basis in the
group：、
Amount in year-end Amount in year-begin
Age Book Balance Book Balance
Bad debt provision Bad debt provision
Amount) Proportio(%) Amount) Proportio(%)
Within
2,397,647.27 59.11 1,507,981.04 47.62
1year
1-2
years
2-3
years
3-4
years
4-5years
Over
1,658,571.80 40.89 1,658,571.80 1,658,571.80 52.38 1,658,571.80
5years
Total 4,056,219.07 100.00 1,658,571.80 3,166,552.84 100.00 1,658,571.80
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Semi-Annual Report 2011
4. Other Account reveivables on which bad debt provisions are provided on Other basis in the
group
Other account reveivalbes Book Balance Amount of bad debt
Guangdong Gaoda Property Development Co., Ltd. 87,000.00
Guangdong Xingyu Law Office 2,302,042.27
Total 2,389,042.27
Notes：The other receivalbes, Given its high recyclable, so no provision for bad debts.
5.. No individually insignificant other receivables with bad debt provision recognized
individually at the end of period
6. There is no provision for bad debts in full or the provision for bad debts is much high while
the debts have been fully recovered or reversed,or no recovery or reversal of a large proportion
of accounts receivable in the current.
7. There is no recovery of accounts receivable through restructuring in the current report period.
8. The cancellation after verification on other accounts receivable in the current
9. There was no other receivable due from shareholders with more than 5% (including 5%) of the
voting shares of the Company.
10.The top five companies in the amount of other receivables
The
proportio
Relationship n of the
Nature or
Name with the Amount Aging total of
content
Company other
receivable
s (%)
No Over 5 See “XI（I）2,
Kunlun Securities Co.,Ltd 33,198,382.12 83.74
relationship years Notes”
Advance by the
Equity Transfer
Guangdong Xingyu Law No Within 3 fee and stamp of
2,302,042.27 5.81
Office relationship years shareholders to
payable
associated costs
Heshan Transportation
No Over 5
real estate Development 1,470,000.00 3.71
relationship years
Company
Huizhou Huaxu Industry No Over 5
109,745.80 0.28
Corporation relationship years
The Parent
Companyh
Guangdong Gaoda Preporty
controlling 87,000.00 2-3 years 0.22
Development Co., Ltd.
grandson
company
Total 37,167,170.19 93.76
11. The accounts receivable from the Related parties
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Semi-Annual Report 2011
Relationship with The proportion of the total
Name Amount Time
the Company of other receivables (%)
Guangdong Gaoda
The controlling
Property Development 87,000.00 2-3 years 0.22
grandson company
Co., Ltd.
Total 87,000.00 0.22
12.There is no accounts receivable that have been terminated to confirm in the current.
13.There is no accounts receivable as a object of securitization in the current.
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Semi-Annual Report 2011
（II）)Long- term s equity investment
Shareholddin Curr
Voting Current
Account Balance in Increase/ Balance in g Impairment ent
Name Initial amount percentage Instruction cash
method year-begin decrease year-end percentage(% proision prov
(%) dividend
) ision
Guangdong Guanghui Expressway Equity 60,332,22
705,503,400.00 800,370,223.40 11,542,047.13 811,912,270.53 30.00 30.00
Co., Ltd. method 4.31
Zhaoqing Yuezhao Highway Equity
204,575,000.00 226,962,556.86 2,234,885.38 229,197,442.24 25.00 25.00
Co., Ltd. method
Equity 60,000,00
Shenzhen Huiyan Expressway 45,420,000.00 188,751,168.74 -37,511,636.68 151,239,532.06 33.33 33.33
method 0.00
Equity
Guangdong Maozhan Expressway 224,000,000.00 133,355,177.99 6,067,316.60 139,422,494.59 20.00 20.00
method
Equity 206,443,4
Jingzhu Exprwssway Guanzhu 280,067,179.42 477,798,649.39 -144,778,935.01 333,019,714.38 20.00 20.00
method 49.58
Guangdong Jiangzhong Expressway Equity
156,750,000.00 145,003,407.76 4,533,627.21 149,537,034.97 15.00 15.00
Co., Ltd. method
Equity
216,251,100.00 122,264,697.46 -7,608,563.47 114,656,133.99 30.00 30.00
Ganzhou Kangda Expressway method
Ganzhou Gankang Expressway Equity
226,379,000.00 215,137,022.04 -11,633,109.99 203,503,912.05 30.00 30.00
Co., Ltd. method
Equity
Guangdong Guangle Expressway 629,997,500.00 339,997,500.00 288,144,101.73 628,141,601.73 30.00 30.00
method
Huaxia Securities Co., Ltd.(Notes Cost
5,400,000.00 5,400,000.00 5,400,000.00 0.27 0.27 5,400,000.00
1) method
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Semi-Annual Report 2011
Shareholddin Curr
Voting Current
Account Balance in Increase/ Balance in g Impairment ent
Name Initial amount percentage Instruction cash
method year-begin decrease year-end percentage(% proision prov
(%) dividend
) ision
Huazheng Assets Management Cost
1,620,000.00 1,620,000.00 1,620,000.00 0.54 0.54 1,393,200.00
Co. Ltd.(Notes 2) method
Cost
Guangfo Expressway Co., Ltd. 154,982,475.25 154,982,475.25 154,982,475.25 75.00 75.00
method
Guangdong Expressway Technology Cost
95,731,882.42 95,731,882.42 95,731,882.42 100.00 100.00
Investment Co., Ltd. method
Cost
Guangdong Fokai Expressway Co., Ltd. 1,264,044,211.85 1,117,351,711.85 146,692,500.00 1,264,044,211.85 75.00 75.00
method
326,775,6
Total 4,210,721,748.94 4,024,726,473.16 257,682,232.90 4,282,408,706.06 6,793,200.00
73.89
Notes 1. The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidation procedure in December 2005. The Company made full provision
for impairment in respect of this long-term equity investment of RMB 5.4 million.
Notes 2:According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co., Ltd. As the June 30, 2005, the amount of net assets
of Huazheng Asset Management Co., Ltd. in book was RMB 279.132 million and the appraised value was RMB - 2299.5486 million ,On October 14, 2005, Jianyin
CITIC Asset Management Co., Ltd. issued the Letter of Soliciting Opinions on Equity Assignment to the Company. Jianyin CITIC Asset Management Co., Ltd. was
willing to pay the price of not more than RMB 42 million to acquire 100% equity of Huazheng Asset Management Co., Ltd. and solicited the Company's opinions.
The Company replied on December 5, 2005, abandoning the preemptive right under the same conditions. The Company made provision of RMB 1.3932 million for
impairment in respect of this long-term equity investment of RMB 1.62 million.
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Semi-Annual Report 2011
(III) Operating income and operating cost
Report period Same period of the previous year
Items
Income Cost Income Cost
Main Operating income
Other operating income 1,790,886.95 232,106.70 6,015,720.00 232,106.70
Other 1,790,886.95 232,106.70 6,015,720.00 232,106.70
(IV) Investment income
1. Investment income
Same period of the
Itmes
Report period previous year
Long-term equity investment income by costing 29,253,089.97 30,187,298.56
Long-term equity investment income by equity method 147,765,406.79 190,006,307.13
Dispose the investment income from the long-term
equity investments
hold the investment income which gained from the
transactional financial assets
Gain the investment income from the held-to-maturity
investment
Hold the investment income during from available-for-sale
22,704,000.00
financial assets
Dispose the investment income from the transactional
financial assets
Dispose the investment income from the held-to-maturity
investment
Dispose the investment income from the available-for-sale
financial assets
Other
Total 199,722,496.76 220,193,605.69
2. long-term equity investment incomes confirmed by Cost method include:
Same period of Reason to increase or
Unit
Report period the previous year decrease
Guangdo Expressway Co., Ltd. 29,253,089.97 19,662,486.37
Guangdong Fokai Expressway Not dividend in the
10,524,812.19
Co., Ltd. report period.
Total 29,253,089.97 30,187,298.56
3.long-term equity investment incomes confirmed by equity method include:
Same period of
Unit Report the Reason to increase or decrease
period previous year
Decrease in net profit
Guanghui Expressway 71,874,271.44 89,942,507.92
Investment Unit
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Semi-Annual Report 2011
Decrease in net profit
Jingzhu Expressway Guangzhu 61,664,514.57 66,221,849.58
Investment Unit
Guangdong Maozhan Decrease in net profit
6,067,316.60 10,558,130.38
Expressway Investment Unit
Decrease in net profit I
Shenzhen Huiyan Expressway 22,488,363.32 25,949,602.19
nvestment Unit
Guangdong Jiangzhong Increase in net profit I
4,533,627.21 3,665,247.95
Expressway nvestment Unit
Decrease in net profit
Zhaoqing Yuezhao Highway 2,234,885.38 9,975,863.69
investment Unit
Guangdong Guangle Expressway -1,855,898.27 not yet operate
Ganzhou Kangda Expressway -7,608,563.47 -16,306,894.58 Decrease in loss investment Unit
Was operated by the end of last
Ganzhou Gankang Expressway -11,633,109.99 period
from Investment Unit
147,765,406.7
Total 190,006,307.13
9
4. Undispose the investment income from the long-term equity investments
5. In the report period, the company has no big restriction on the investment earning repatriation
（V）. Supplement Information of Cash flow statement
Same period
Supplement Information of the
Report period previous year
I.Adjusting net profit to net cash flow in operating activities
Net profit 141,134,385.76 182,063,482.36
Add: Asset devaluation reserve provided
Fixed assets depreciation,Oil and gas depreciation, Produce
901,764.52 699,545.27
matter depreciation
Amortization of intangible assets
Amortization of long-term expenses to be amortized
The loss from the disposal of fixed assets, intangible assets
-13,500.00 -238,066.70
and other long-term assets
Loss from scrapping of fixed assets
Loss from fair change
Financial expenses 31,940,802.70 23,853,357.57
Investment loss -199,722,496.76 -220,193,605.69
Decrease of deferred tax assets
Increase of deferred tax Liabilities
Decrease of inventories
Decrease of operating accounts receivable 1,080,203.31 -706,157.97
Increase of operating accounts payable 7,165,568.40 -34,377,642.78
Other
Net cash flow generated from operating activities -17,513,272.07 -48,899,087.94
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Semi-Annual Report 2011
Same period
Supplement Information of the
Report period previous year
II.Investment and financing activities not involving cash
receipts and expenditure
Transferring debts to capital
Convertible corporate bond to mature within one year
Leasing fixed assets through financing
III、Net increase of cash and cash equivalent
Balance of cash at the end of the period 135,341,856.69 224,012,998.01
Less: Balance of cash at the beginning of the period 179,597,767.35 113,474,208.24
Add: Balance of cash equivalent at the end of the period
Less: Balance of cash equivalent at the beginning of the period
Net increase of cash and cash equivalent -44,255,910.66 110,538,789.77
XII．Supplement Information
(1) Items of Non-recurring Gains & Losses
Items Amount Explanation
Abandon two interchange and two toll gate
Gain/loss form disposal of non-current assets -54,607,042.73
because of the fokai expansion
Tax refund, deduction and exemption that is
examined and approved by authority exceeding
or has no official approval document.
Governmental Subsidy accounted as current
gain/loss, except for those subsidies at with
amount or quantity fixed by the national 71,600.00
government and closely related to the
Company’s business operation.
Capital occupation fee collected from
non-financial organizations and accounted as
current gain/loss.
Income from the exceeding part between investment
cost of the Companypaid for obtaining subsidiaries
associates and joint-ventures and recognizable net
assets fair value attributable to the Company when
acquiring the investment.
Non-monetary asset exchange gain/loss.
Gain/loss investment of Commission
Asset impairment provisions for force major
such as natural disasters
Gain/loss from debt reorganization
Enterprise reorganization expenses, such as
payment to stuff placement and consolidation
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Semi-Annual Report 2011
Items Amount Explanation
expenses
Gain/loss from trades obviously departed from
fair value
Net gain/loss of current term from
consolidation of subsidiaries under common
control from beginning of term to the
consolidation date
Gain/loss from debt forcasting without
connection to the main business operation
In addition to normal business with the
company effective hedging related business,
holders of tradable financial assets,
transactions and financial liabilities arising
from changes in fair value gains and losses, as
well as the disposal of trading of financial
assets, trading financial liabilities and
available-for-sale financial assets gains return
on investment;
Single impairment test for impairment of
receivables transferred back to preparation
Commissioned external loans by the Gain/loss
（The use of fair value measurement model of
follow-up to the fair value of real estate
investment gains and losses arising from
changes
According to tax, accounting and other laws,
regulations, the requirements of the current
Gain/loss for a one-time adjustment of the
impact of the current Gain/loss;
Entrusted with the operating of the trust to
obtain fee income
Net amount of non-operating income and
4,314,393.90
expense except the aforesaid items
Other non-recurring Gains/loss items
Amount of influence of minority interests 12,867,051.25
Amount of influence of income tax 10,186,415.57
Total -27,167,582.01
（2）Return on net assets and earnings per share
Return Earnings per share（RMB）
Period Profit of the report period on net
Fully diluted Weighted average
assets,
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Semi-Annual Report 2011
Weighted
(%)
Net profit attributable to the
6.43 0.19 0.19
owners of Company.
Net profit attributable to the
January-June 2010
owners of Company after
6.26 0.18 0.18
deducting of non-recurring
gain/loss.
Net profit attributable to the
3.35 0.12 0.12
owners of Company.
Net profit attributable to the
January-June 2011
owners of Company after
3.98 0.14 0.14
deducting of non-recurring
gain/loss.
1.Calculation process
Items Line January-June 2011 January –June 2010
Net profit attributable to common shareholders of the
1
Company 145,165,687.23 237,803,790.41
Non-recurring gain/loss attributable to the net profit of
common shareholders of the parent company after 2
deducting of income tax influences -27,167,582.01 6,442,208.09
Net profit attributable to common share holders of the
3=1-2
company fter deducting of non-recurring gain/loss 172,333,269.24 231,361,582.32
Number of months in the report period 4 6 6
net assets at the period-begin attributable to
5
common shareholders of the company 4,283,251,674.35 3,598,233,573.62
net assets increased due to issuance of new
share ordebts for equity swap or attributable to 6
common shareholders of the Company
net assets, which is about repurchase
during the report or cash dividend
7
reduce, and belongs to company
common shareholders. 125,711,774.80 125,711,774.80
number of months from the next month when
net assets Increased to the end of the report 8
period
number of months from the next month when
net assets decreased to the end of the report 9
period 1 1
Net assets attributable to common shareholders of the
10
Company to the end of the report period 4,161,071,572.64 3,710,177,448.48
weighted.Net assets attributable to common 11=5+1×50%+
shareholders of the Company 6×8÷4-7×9÷4 4,334,882,555.50 3,696,183,506.36
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Semi-Annual Report 2011
Items Line January-June 2011 January –June 2010
Weighted average return on equity（Net profit
12=1÷11
attributable to common shareholders of the Company） 3.35% 6.43%
Weighted average return on equity
（Non-recurring gain/loss attributable to the net profit
13=3÷11
of common shareholders of the parent company after
deducting of income tax influences） 3.98% 6.26%
2. It has no dilutive at present but it may have dilutive potential common shares after.
There is no event happened in this accounting period.
3. Between the date of the balance sheet to the approved date of financial report, the company
issued the number of common shares or potential common shares have a great variation.
There is no event happened in this accounting period.
（3）The anomalies and the explanation of our main financial statements project
1. The unusual amount or the abnormal changes in the comparative period in the financial
statement project
Balance in Balance in Percentag
Variable
Items year-end year-begin e in total Alteration reason
Ratio
asset
Guangdong United
Electronic Charging Co.,
Ltd. failed to timely make
Account
28,880,874.03 18,043,508.27 0.27% 60.06% transfer so that the
receivable
accounts receivable at the
end of current period
increased.
Due to expansion of Fokai
Expressway, the
prepayment for
Prepayments 163,352,203.10 195,653,487.32 1.50% -16.51%
engineering materials
increased at the end of
period.
The change of fair value is
Available for
caused by the change of share
sale financial 804,000,000.00 950,400,000.00 7.39% -15.40%
price of China Everbright
assets
Bank
The extension project of Fokai
partially finished to traffic
Fixed assets 4,195,633,530.96 3,782,771,159.0738.58% 10.91% comes to the fixed assets,
which causes the increase of
fixed assets
The extension project of Fokai
Construction partially finished to traffic
2,400,263,255.08 2,573,858,108.9422.07% -6.74%
-in-progress comes to the fixed assets,
which causes the increase of
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Semi-Annual Report 2011
Balance in Balance in Percentag
Variable
Items year-end year-begin e in total Alteration reason
Ratio
asset
Construction-in-progress
The amount of repayment
Short-term of short-term loans are
936,000,000.00 500,000,000.00 8.61% 87.20%
Loan greater than the amount
borrowed.
The project accounts payable
Account
98,525,682.97 121,223,271.87 0.91% -18.72% are beyond the newly
payable
increased
Tax payable 18,858,519.81 1,702,514.30 0.17% 1007.69%
Interest Appropriated bond interests
41,635,005.98 17,571,390.99 0.38% 136.95%
payable are unpaid
The dividends of the
Dividends
154,139,309.18 18,997,256.40 1.42% 711.38% Company for 2010 has not
payable
been paid.
The fair value of financial
assets available for sale got
Capital surplus 1,810,758,715.57 1,957,158,715.5716.65% -7.48%
increased, it caused the
increment of capital surplus.
2.The unusual amount or the abnormal changes in the items of the income statement
Balance in Balance in Percenta
year-end year-begin ge in Variable
Items Alteration reason
total Ratio
asset
The complex impact of the
Administrative increase/ decrease changes of
60,950,667.18 47,100,615.59 39% 29.41%
Expenses labour cost and other special
expense
Financial The increasing loans cause the
104,842,371.93 82,905,090.06 67% 26.46%
expenses add of interest expense
Less the net profits of Joint
Ventures are, less the
Investment
170,469,406.79 190,006,307.13 109% -10.28% investment income of the
income
company calculated according
to the equity method
Guangdong Fokai Expressway
Co., Ltd. took Jiujiang Bridge
Non-operati
4,541,890.38 15,990,763.99 3% -71.60% back last period to clean up the
ng income
debris and gain the amendment
of RMB14,425,000, which was
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Semi-Annual Report 2011
Balance in Balance in Percenta
year-end year-begin ge in Variable
Items Alteration reason
total Ratio
asset
included in the non-business
income in 2010
Abandon two interchange and
Non-operati
54,762,939.21 4,622,504.88 35% 1084.70% two toll gate because of the
ng expenses
fokai expansion
The increased costs of this
Income tax period cause the decrease of
40,695,134.57 45,276,305.33 26% -10%
expense income tax expense of the
current period
XIII. The approval of financial reports
The report of the financial statements was approved by all directors of the board of
directors of the Guangdong Provincial Expressway Development Co., Ltd. on August
9 ,2011.
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Semi-Annual Report 2011
VIII . Documents Available for Inspection
1. The interim report text with signatures of the president.
2.The financial report text with the signatures and stamps of the unit principal ,the
principal in charge of accounting , and the principal of the accounting Department .
3. Text of all the documents that disclosed on the newspapers and websites designated
in the Company Rule within the report period.
4. Other relevant materials.
The Board of Directors of Guangdong Provincial Development Co., Ltd.
August 9, 2011.
149
